Loss of stock
When a system failure turns stock into waste.
Cover for loss of perishable stock following a cyber incident affecting temperature control or monitoring systems.
The scenario
A fruit and vegetable wholesaler relies on temperature control and monitoring systems to protect perishable stock stored in refrigerated units.
Following a security failure as a result of a cyber breach, those systems are disrupted. Refrigeration is affected, temperatures are no longer properly monitored, and the issue goes unnoticed until routine checks are carried out.
By then, the damage has already been done.
Large quantities of stock can no longer be sold. Customer orders are affected, supply commitments become difficult to meet, and the business faces a significant financial loss.
What began as a cyber incident has quickly become a commercial problem.
The issue isn't the system failure itself – it's the value of the stock that's lost as a result.
The risks to consider
Cyber incidents are often associated with data breaches, ransomware attacks, and system downtime.
However, for businesses that rely on connected equipment to protect, monitor, or manage physical goods, the consequences can extend much further.
Temperature-controlled storage, automated monitoring systems, and connected operational technology can all create dependencies that are easy to overlook until something goes wrong.
The question is not just “What would happen if a system failed?” but “What would happen to the stock that system is protecting?”
The Markel difference
Markel's cyber cover can reimburse the costs arising from damage to perishable stock caused by a security failure affecting temperature control or monitoring systems.
This can help businesses manage the financial impact when a cyber incident affects physical goods as well as operations.
Conversation starter
“What would happen if the systems monitoring your refrigerated stock failed overnight and nobody realised until the next morning?”