Most law firms don’t believe they are targets for hackers. But a recent UK government report estimated that 62% of them had suffered a cyber attack in the past 12 months.
A data breach can easily occur. Most result from a mistake: clicking on an email attachment that contains a virus, losing a laptop or sending a computer file to the wrong person could mean client information goes missing, which could result in your firm suffering severe embarrassment as well as an investigation or fine from the regulator.
Around two thirds of law firms don’t have a crisis plan in place to deal with the fallout from a data loss. Cyber liability insurance offers peace of mind at an affordable cost. It gives you the reassurance of knowing that you can call on experts who can respond immediately to your crisis.
Why should you buy it?
Reputational damage – your good name could be destroyed by a single incident
Your business out of action – can you afford to be locked out of your IT systems unless you pay a ransom money
The cost of getting your practice back on its feet – following an attack you will need to try to restore your data, ensure your system is secure and inform the regulator and your clients
Fines and investigations - the ICO can impose stiff penalties on firms it believes are not doing enough to keep their data safe.
Our guide to PI insurance for law firms
What does it cover?
You have immediate access to experts who can take control of managing the crisis and advise you on what you should do.
Business interruption cover
If your law firm can’t operate because your computer systems are out of action then any resulting loss in profits will be reimbursed.
Fines & investigations cover
Your legal costs from a regulatory investigation will be paid, along with any fine or penalty imposed on your firm (if insurable by law).
Electronic data cover
It will pay for forensic IT experts to restore your files following a data breach or cyber attack, and, if necessary, to protect your systems against further attack.
Protecting your reputation
The cost of hiring experts to inform those affected by an information breach, as well as any extra support for clients will be paid. PR consultants will also work to help restore your firm’s reputation.
Every law firm should consider buying a cyber liability policy. Why? Because they rely on computer systems and also keep their clients’ sensitive information on electronic files, meaning they are all potentially the victim of a cyber attack or accidental loss of data.