UK businesses affected by European attacks
A series of cyberattacks that destroyed millions of euros of inventory across Europe by remotely forcing supermarket refrigerators into defrost mode has reached the UK. Richard Horne, chief executive of the National Cyber Security Centre, confirmed that UK organisations had been affected after his team worked through the night alerting firms with vulnerable technology exposed. The British Association of Independent Meat Suppliers stated that some of its members had been affected, though none had lost inventory. The incidents follow widespread disruptions in France, Ireland and six other countries since October, which caused substantial stock losses and trading interruptions.
The persistent coverage gap
The attacks have exposed a blind spot in standard corporate insurance. Cyber policies typically exclude physical losses, while property policies featuring spoilage cover frequently carry cyber exclusions. Major international retailers confirmed that their insurance did not cover the incidents, and insurance brokers reported the same limitation across the sector. Standard cyber policies responding to data breach and business interruption costs do not reach stock destroyed by remotely triggered temperature changes. According to Aon, a specialist endorsement or standalone perishable goods cover is required, which most UK retailers do not currently hold. Additional exposures include potential war exclusions if attackers are found to be state-backed, and questions regarding patching warranties for legacy operational technology connected directly to the internet with default passwords.