Responding to the Risk of Piracy
27 October 2020
This year has seen piracy incidents becoming increasingly focussed upon the Gulf of Guinea and where gangs have been extending their operations well beyond Nigeria with kidnapping of personnel on board for a ransom becoming the most common consequence of a boarding.
BIMCO, ICS, INTERCARGO, INTERTANKO and OCIMF recently issued a joint warning that shipping is at increased risk of piracy in the Gulf of Guinea as the region enters its dry season.
In addition to the risk mitigation measures identified in the warning, the London Club recommends that insurance coverage is reviewed before entering areas of higher piracy risk. K&R insurance can provide extensive cover for ransom events and has proven its worth because it offers certainty of cover and its benefits are available promptly. Ransom payments are not directly covered by other customary insurances and are unlikely to be available after the event by a discretion for areas like the Gulf of Guinea where piracy is a recognised risk while relatively inexpensive K&R insurance is available.