The Association of Average Adjusters (AAA) has raised concerns in the maritime industry regarding insurance claims for vessel groundings caused by GPS spoofing. This growing ambiguity stems from cyber exclusion clauses, notably the LMA5403, which are increasingly found in hull and machinery (H&M) policies.

GPS spoofing involves misleading a vessel’s navigation system with false positioning signals, potentially causing groundings. Traditionally, such incidents were covered under H&M policies. However, the addition of cyber exclusion clauses has complicated matters. These clauses exclude losses associated with electronic interference, such as GPS spoofing.

Chris Kilbee, AAA chair, pointed out that establishing whether spoofing was intended to cause harm is complex, raising the evidentiary standards for insurers. If insurers cannot prove malicious intent behind spoofing, denying coverage becomes difficult. Conversely, if intent is established, shipowners could face denied claims.

The AAA encourages shipowners to consider cyber buy-back clauses, which offer coverage reinstatement for spoofing incidents for an additional premium. This consideration is crucial for operators in high-risk areas prone to spoofing incidents, such as the Red Sea, Black Sea, Persian Gulf, and South China Sea.

Reports of GPS spoofing have surged throughout the 2020s. For instance, Marlink, a satellite communications company, reported a dramatic increase in GPS-related queries, with over 150 vessels affected in a single day by mid-2025. Notable incidents include two tankers colliding near the Strait of Hormuz and the MSC Antonia running aground near Jeddah, both blamed on GPS spoofing.

Shipowners and brokers should examine policy wordings carefully to avoid potential coverage gaps and consider endorsements that mitigate risks in regions where spoofing is prevalent.