Specialty and P&C reinsurer Canopius Group has launched a new cyber-triggered spoilage product 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. The PRA’s latest dynamic general insurance stress test reinforces the growing relevance of this risk. Its cyber scenario specifically includes the spoilage of perishable stock, highlighting the importance of solutions that address this exposure.

Canopius’ says its new cover is designed to bridge the gap between cyber and property exposures and address losses arising from compromised product integrity.

It offers coverage for spoilage caused by a cyber incident without physical damage, such as systems are compromised which control the storage, handling or quality of stock without causing any other physical damage. It also covers 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. Canopius adds that it is particularly relevant for organisations operating in food and beverage, pharmaceuticals, life sciences, agriculture, logistics, and cold-chain sectors.

Gemila Costin, underwriter for cyber & technology at Canopius, said: “Our cyber-triggered spoilage cover addresses a clear and growing exposure for businesses that rely on controlled environments. As cyber incidents increasingly affect operational systems, losses can escalate materially based on the value of perishable stock that is no longer sellable. This product reflects our understanding of these emerging challenges, and our commitment to delivering smart, practical solutions for clients.”

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