This paper deals with piracy as a security threat in the maritime industry. The purpose of the paper was to examine the impact that increased piracy activity in certain areas of the world has on the security of the maritime industry. The paper provides a theoretical framework for piracy and presents a brief historical overview of the development of piracy. An analysis of the legal regulation of piracy, international legal conventions and codes of conduct adopted with the goal to repress piracy, was given, with particular reference to the introduction of the International Ship and Port Facility Security Code (ISPS Code). During an interview with an employee of „Atlantska plovidba d.d.“, in charge of ship security, the company's practices regarding defense against pirate attacks and the embarkation of armed escorts on their ships were described. The impact of piracy on maritime insurance and ransom as an insured risk was explained. Contemporary piracy has been analyzed, the world's most endangered areas (with particular reference to Somali piracy) were mentioned as well as the reasons for the emergence of piracy in these areas, factors behind the success of pirate attacks, and the potential threats of piracy. The techniques and methods of organizing the protection of the ship against pirate attacks are outlined. Despite the adoption of international regulations that have contributed to safety in endangered areas, and the implementation of protection measures, piracy remains a serious threat to navigation safety in many areas of the world.