How cyber attacks can cause massive operational losses for connected businesses

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2026 November 02

A recent cyber incident in France has highlighted what can happen when simple, everyday operational equipment connected to the internet is compromised.

When most people think of a loss from a cyber attack, they think of computers being hacked, data being stolen, or emails being intercepted.

In the French case, cyber criminals were able to access computer-controlled refrigeration equipment and remotely alter the temperature, resulting in a massive loss of stock.

Cyber events are evolving

The type of cyber events we are seeing now differ significantly from the past. With many businesses moving toward smart monitoring, automated inventory management, cloud-connected environmental controls, and integrated operational technology (OT), the impact of a cyber attack goes far beyond IT systems.

Any internet-connected device in your facility can be a target. This could include smart ovens, industrial heating and cooling systems, security infrastructure, automated manufacturing tools, and a number of other connected devices that, if compromised, could lead to unexpected downtime, facility closure, and severe financial loss until the issue is rectified.

The insurance challenge

A loss of physical stock or equipment caused by a cyber attack may not be covered by traditional asset or property policies in the same way it would for a mechanical breakdown or power outage. This is because many property policies contain a specific exclusion that removes cover for loss arising directly or indirectly from a cyber attack.

The important question therefore is whether your Property, Business Interruption, and Cyber coverage are structured to work together seamlessly in this type of scenario.

Where cyber insurance can help

• Business interruption: Potential protection for loss of profits and additional costs as a result of the cyber breach halting trade. This could stem from a direct attack on your connected equipment or a third-party supplier (such as an internet or cloud service provider).
• Incident response and restoration: Getting experts on the ground as soon as possible to isolate and restore the affected control systems, clean data, and investigate the root cause.
• Hardware & equipment: If the hardware or control system is damaged by the breach and rendered inoperable, specialised help is needed—often requiring a fresh system reinstall or, in the worst case, physical hardware replacement.

Five questions for your business

1. What connected technology and operational equipment are critical to our day-to-day operations?
2. How could the Property policy's cyber exclusion affect our physical damage, stock, and business interruption claims?
3. What does the Cyber policy actually put back, including business interruption, increased costs of working, data restoration, and hardware repair?
4. Are the policy limits, sub-limits, and waiting periods appropriate for a material operational interruption?
5. Is there a dangerous gap where traditional Property cover stops and Cyber cover is expected to begin?

Key takeaway

Good insurance design is not simply about having separate Property and Cyber insurance policies. It is about making sure those policies work together when a cyber event creates a physical, operational, or financial loss.

Have questions or want your cover reviewed? Have a chat to your broker or drop us a line.