Is Your Firm Protected Against a Serious Data Breach?
Cyber-attacks against legal professionals are on the rise. According to the American Bar Association, a 2018 Survey reports that about 23% of respondents overall reported that their firms had experienced a security breach at some point. It might surprise some attorneys that their legal professional liability (LPL) coverage does not cover all data breaches and cyber-attacks. While LPL coverage is necessary, there is a chance that LPL will not be able to pick up additional costs. To be indemnified from such attacks, law firms need to have a cyber insurance policy protecting them.
What is Cyber Insurance?
To understand the importance of cyber insurance, it is important to have a clear understanding of what they cover. Cyber insurance goes by various names such as cyber liability (CLIC) or cyber risk coverage. The goal of cyber insurance in a law firm is to assist with the financial aspects of data recovery and other activities should a cyber breach occur.  This form of policy is not trending but has become an essential aspect of a law firm’s business plan.
According to cyber insurance experts, coverages include incident response costs, cyber extortion, business interruption, fraud and network and information-security liability. Other coverages available include:
- Communications and media liability
- Regulatory defense expenses
- System failure
- Reputational harm
Protect Your Firm’s Data with Cyber Insurance
In today’s data-driven business environment, it isn’t a matter of whether a cybersecurity breach will occur to a law firm, but rather when and the damages the breach caused. Should a serious cyber breach happen could place an attorney in deep financial trouble without the appropriate cyber insurance.
Lawyers are not immune to the actions of cybercriminals. A data breach is expensive, hard to quickly detect and difficult to defend against. In reality, cyber insurance policy is more a necessity than an additional option. Just think of it this way, a $5,000 policy could save hundreds of thousands in the event of a serious data breach. Subscribe to the Leopard Blog for discussions on firm management, diversity, law firm insights, and other relevant topics.
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