If Software on Board Fails, Who Pays? New EU Rules Protect the Crew, Not the Owner

Three news items this week answer one question: when software or AI on a ship goes wrong, who pays?

The law. From 9 December 2026, the EU's new Product Liability Directive treats software as a product. If faulty navigation, engine control or autonomy software causes injury, the maker can be liable without anyone proving fault. A court can order the maker to show its evidence. There is no cap on the amount. Security holes can count as a defect too. In a SplashTech article, the legal researcher Farzaneh Javadi points out who benefits. Only people can claim: crew and passengers, for injury and death, and private owners for things like a passenger's car on a ferry. The shipowner cannot claim for the ship, lost hire or salvage. That still depends on the contract with the supplier and on hull insurance.

Two more details. It covers only software put on the market after 9 December. But an update can count as a new product. So the date of the last big update may matter more than the date the system came on board. And suppliers facing unlimited injury claims will try to push the risk back to owners in their contracts.

The insurers. The chief executive of Chubb, one of the world's largest insurers, said on 22 October that AI liability is a growing risk insurers have not yet priced. He expects clearer policy wording first, then exclusions, which means AI losses taken out of normal cover, and then separate AI policies. He did not talk about marine. In Korea, Hanwha General Insurance and the cyber firm CYTUR plan a pilot in December for cyber insurance where the terms depend on how secure the ship is. No prices or details yet.

What to do now. Read any software or AI contract you are renewing with 9 December in mind. Look for clauses where you must protect the supplier against injury claims, and check with your P&I club whether you are covered for that. Ask for access to the system's decision logs and update records. And before your next renewal, ask your P&I club and hull insurers in writing whether a loss linked to AI or software is covered. [Splash247 · Insurance Journal · Digital Ship]

This story is part of the Maritime AI Digest of 1 November 2026.

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