Canopius Group, the London-based specialty and property/casualty re/insurer, announced the launch of a spoilage product, a cyber-triggered spoilage cover designed to protect businesses when a cyber incident renders their perishable stock unsellable.
When cyber incidents impact the systems that manage temperature, quality controls or environmental storage conditions, the impact can go far beyond operational downtime – it can determine whether products remain safe, compliant and fit for sale.
Canopius said the UK Prudential Regulation Authority’s latest Dynamic General Insurance Stress Test reinforces the growing relevance of this risk. Its cyber scenario specifically includes the spoilage of perishable stock, underscoring the importance of solutions that address this exposure, Canopius said.
Canopius’ Cyber-Triggered Spoilage cover is designed to respond to these scenarios. It bridges the gap between cyber and property exposures and addresses losses arising from compromised product integrity.
Key Coverage Scenarios
- Spoilage caused by a cyber incident without physical damage: Coverage for spoilage that occurs when a cyber event compromises the systems controlling the storage, handling or quality of stock without causing any other physical damage.
- Spoilage resulting from physical loss or damage following a cyber event: Coverage for spoilage that occurs as a result of a cyber event that causes physical damage to buildings or equipment in which stock is stored.
The product responds to events such as ransomware, or any other malicious interference, as well as operational or administrative errors. It is particularly relevant for organizations operating in food and beverage, pharmaceuticals, life sciences, agriculture, logistics, and cold-chain sectors.
“Our Cyber-Triggered Spoilage cover addresses a clear and growing exposure for businesses that rely on controlled environments,” commented Gemila Costin, underwriter, Cyber & Technology, at Canopius, in a statement.
“As cyber incidents increasingly affect operational systems, losses can escalate materially based on the value of perishable stock that is no longer sellable,” Costin added. “This product reflects our understanding of these emerging challenges, and our commitment to delivering smart, practical solutions for clients.”
Source: Canopius
Topics Cyber New Markets
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