As law practices become increasingly reliant on technology for managing their day-to-day operations, conducting client communication, and storing sensitive client information, their need for cyber liability insurance also increases.
The National Institute of Standards and Technology, part of the U.S. Department of Commerce, reports that while cybersecurity threats are a significant business risk for all companies, small and medium-sized businesses are particularly vulnerable to attacks.
Clients place a tremendous amount of trust in their attorneys as they share personal, confidential information including financial records, medical records, social security numbers, and depositions. Data breaches and cyberattacks put attorneys and their clients at risk, potentially damaging the firm’s reputation and exposing private client information.
What can a cyber liability insurance policy cover?
Cyber liability insurance is a type of insurance policy that can help protect your law firm against damages and losses that stem from a cyberattack. This includes coverage for financial losses due to a cyberattack as well as the costs of privacy investigations or lawsuits that arise from the attack.
A cyber liability insurance policy can help to cover the following and more:
- Lawsuits related to a breach of client privacy and security
- Lawsuits stemming from a breach of your employees’ privacy
- Federal and state regulatory fines and fees
- Credit monitoring services
- Cost of data recovery
- Expenses related to notifying your clients that their data was compromised
- Cost of legal services
- Loss of business income due to the computer virus or network breach
As cyber threats continue to evolve, it is more important than ever for law firms to protect themselves against these risks. The U.S. Small Business Administration outlines several measures businesses can take to protect themselves from cyberattacks. One key step to take today is to obtain cyber liability insurance coverage for your law practice.