USB Encryption

Yes, given the correct policy it can do exactly that. SafeGuard though is becoming EOL next July 2023, so you would be better looking at what Central managed Encryption can offer. It's not as quite a like for like replacement yet.

Thanks, Central managed Encryption? is that a current product are part of something else?

Thanks

It's a subscription based cloud service that includes AV/Endpoint Protection, Sophos WiFi, Sophos switches etc... You can sign up for a free trial here - but I don't think it can do USB device encryption (SafeGuard can and does) - I think it can only manage FileVault (Apple's encryption system) and BitLocker (MS's encryption system). Both these are full disk encryption products and not file encryption (where an individual file/folder is encrypted)  

More details here of how it works in Central - Encryption (sophos.com)

And you could sign up for a trial here - but I don't think this is ideally what you're looking for? - Full Disk Encryption: Sophos Central Device Encryption