French supermarkets face millions in waste after cyber-hacked refrigeration, insurers say policies won’t cover losses
French supermarkets suffered millions of euros in waste after hackers raised temperatures in connected fridges, and insurers say typical cyber policies don’t cover the physical losses.
On the night of Oct 11, unidentified attackers took over internet-connected refrigeration units in roughly 350 French supermarkets, raising temperatures to 50 °C and resulting in tens of millions of euros in spoiled food. Thierry Cotillard of Les Mousquetaires warned of a legal fight over liability, while insurers clarified that most cyber policies do not reimburse physical losses and may be void if retailers failed to install critical software updates.
The hack affected devices using Danfoss, Copeland and Dixell software, many of which were out-of-date or unsupported. Experts such as David Molony of Aon and Emma Pleut of WTW suggest retailers seek coverage for perishable inventory, a product already used in energy and marine sectors. Underwriters anticipate higher premiums and new insurance products tailored to physical damage from cyber incidents. The episode highlights growing risks as IoT devices become more prevalent in retail operations.
Why it matters
It shows how cyber attacks can cause costly physical damage and expose gaps in standard insurance coverage for retailers.
How this story developed
- Oct 12 Cyberattack disrupts refrigeration systems at Intermarché and Coopérative U stores
- Oct 12 The attack specifically exploits outdated Danfoss software versions older than version 4.
- Oct 14 Additional reports note that stores of Monoprix, Leclerc and Carrefour also experienced temperature overrides.
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