Cyberattacks on corporate networks are on the rise, and the ramifications from such attacks can be financially devastating. Recent benchmarking data shows that the number of material cyber breaches at large businesses increased by 20.5% from 2020 to 2021, with cybersecurity budgets across industries aimed at preventing breaches jumping 51%. And while businesses suffering cyberattacks emanating from state-sponsored entities may have insurance coverage for their losses, the scope of coverage available can vary dramatically depending on the amount of coverage purchased and the terms and conditions of policies. Interestingly, next month Lloyd’s is adding exclusions to limit insurance coverage for state-sponsored cyberattacks.

Read on to learn how to prepare your company for these rapidly evolving security risks and why policyholders should review cyber, property and other policies to determine which may provide cyberattack coverage.