Unfortunately, lawyers and law firms have become a popular target for hackers, who may try to infect law firm computer systems with ransomware or breach secure databases to steal sensitive client information. A cyber attack or breach can have significant legal consequences for attorneys and firms. Wisconsin attorneys can protect their businesses and financial interests from legal claims by obtaining cyber liability insurance and implementing best practices to minimize the risks of and respond to cyber breaches.
Common Cyber Risks Facing Wisconsin Law Firms
Some of the top cyber-related risks facing law firms include:
• Data breaches to steal clients’ personal identifying information (dates of birth, Social Security numbers, addresses, etc.), financial information, including bank account and routing numbers, and confidential case files, including clients’ protected health information or trade secrets
• Ransomware attacks, where hackers install malware that disables computer systems unless a firm pays a ransom to the hackers to disable the malware
• Phishing or social engineering schemes, where hackers obtain passwords or other confidential information by calling or emailing support staff
• Denial-of-service attacks or installation of malware on a firm’s websites
Cybersecurity Requirements and Ethical Duties in Wisconsin
A lawyer’s or law firm’s cybersecurity obligations arise from their ethical duties under Wisconsin’s Rules of Professional Conduct. Some of the rules that relate to a lawyer’s cybersecurity requirements include:
• Rule 1.1: Requires attorneys to provide competent representation
• Rule 1.3: Requires lawyers to act with reasonable diligence
• Rule 1.6: Obligates attorneys to maintain the confidentiality of a client’s information
• Rule 1.15: Requires the safekeeping of client property and funds held in trust by an attorney
• Rule 5.3: Makes attorneys responsible for nonlawyer employees to ensure that their conduct complies with the lawyer’s professional obligations
Ethical rules governing the legal profession require attorneys and law firms to take reasonable steps to safeguard their computer systems against unauthorized intrusion and to safeguard client information stored on a lawyer’s or firm’s electronic systems.
Practical Steps Wisconsin Lawyers Can Take to Reduce Cyber Liability
Steps that attorneys can pursue to reduce their risks of becoming the victim of a cyber attack or breach include:
• Strengthening technical safeguards, including by implementing encrypted email systems, multifactor authentication protocols, and secure client ports, performing recommended software updates, installing firewalls and anti-malware detection tools, and regularly backing up data offline or in cloud storage
• Improving internal policies and practices, including developing tailored cybersecurity practices, training staff on avoiding phishing attempts and following safe digital practices, and controlling access to sensitive data
• Developing secure mobile and remote work practices, such as VPNs, password-protected laptops and mobile devices, and procedures for reporting lost, stolen, damaged, or compromised devices
Purchasing and Managing Cyber Liability Insurance
Many legal malpractice insurance providers offer cyber liability insurance to protect lawyers and law firms against liability arising from data breaches or cyberattacks on their computer systems. Cyber liability insurance can cover expenses or losses, such as remediation costs from data breaches, costs of client notifications, and business interruption losses. A general malpractice insurance policy may have exclusions that preclude coverage for liability arising from cyberattacks or breaches, making a cyber liability insurance policy critical for lawyers and firms that communicate with clients and other parties online, store client information electronically, or have online client portals.
Contact WILMIC Today
Don’t leave yourself or your firm exposed to the fallout of a cyber attack. Instead, get proactive and purchase cyber liability insurance that protects you in the event of a breach. Contact WILMIC today for an initial consultation with our Wisconsin cyber liability insurance staff to learn more about our policies and discuss which options might be right for you.