Cyberattack on French Retailers Highlights Insurance Gaps

A cyberattack targeting refrigeration systems in major French retailers has highlighted gaps in traditional insurance coverage for physical damages resulting from cyber incidents. The attack, which occurred between Sunday and Monday, affected cooling equipment in hundreds of retail outlets belonging to several chains, including Intermarché, Neto, U, Leclerc, Carrefour, and Monoprix. The incident led to the disposal of perishable food products stored in the compromised refrigeration systems.

During the attack, commercial institutions were forced to discard significant quantities of food products due to the malfunctioning of their refrigeration equipment. The incident has sparked a debate about the adequacy of traditional insurance policies in covering losses from cyberattacks. Some insurance contracts do not provide coverage for such damages, according to industry officials.

Thierry Cotillard, CEO of the Moscater Group, which owns the Intermarché chain, noted that certain insurance policies do not cover these types of incidents, prompting a discussion on the limitations of current insurance protections for businesses facing digital threats. Emma Blou, the cyber risk manager at the insurance broker WTW, explained that cyber insurance policies typically cover the financial costs and consequences of digital incidents, but physical damages and property losses are not usually included in basic coverage. She also highlighted that cyber risks now extend to the broader technical and economic systems surrounding businesses, including suppliers, partners, and service providers, making the potential impacts of attacks more complex than just IT system failures.

François Boum, president of the French Association for Risk Management and Business Insurance, urged companies to review their insurance contracts and add specific coverage for physical damages resulting from cyberattacks. He noted the emergence of new insurance products labeled 'cyber damage insurance' over the past two years, aimed at addressing the evolving nature of threats faced by economic institutions. Insurance companies are currently assessing potential liabilities among product distributors, refrigeration equipment manufacturers, and technical service providers before making decisions on compensation, as investigations involve equipment linked to companies such as Danish Danfoss and American Copeland.

Data indicates that French companies spent approximately €306 million on cyber insurance in 2025, compared to €9.5 billion on various types of insurance, underscoring the growing importance of cyber risk management in the business sector.

**Context/Background:** This incident underscores the increasing vulnerability of critical infrastructure to cyberattacks and the need for comprehensive insurance coverage to mitigate the financial impacts of such events. As businesses become more digitally integrated, the potential for cyber threats to cause physical damage and economic loss is rising, necessitating a reevaluation of traditional insurance models.