As cyber threats grow scarier and more complex by the day, cyber liability coverage has become even more important for practicing lawyers.
And it’s not just big firms that need cyber protection. Solos and small firms need it too.
“[A]ny organization that uses technology and collects data is vulnerable to a cyberattack that could do lasting damage to its employees and customers,” according to the website CO. “Cyber insurance is a modern necessity. Having [it] protects businesses from these attacks and helps them recover costs after a security breach.”
“1. Hackers see an opportunity to take advantage of large quantities of valuable and quality documents. By targeting law firms, they can quickly access such information as technical secrets, business strategies, and financial data for numerous clients.
2. Law firms provide a quick detour around information of little value. Large corporations tend to store large amounts of data in their computer systems. However, the information they provide to outside counsel is usually more selective and valuable to hackers. By skipping the corporation and targeting your law firm, they more easily access the high-value data.
3. Law firms are notorious for having low levels of data security in place … even worse than the clients they are serving. The hustle and bustle of a law firm sometimes prevents owners and administrators from taking the time to upgrade security measures. But that doesn’t have to be a problem.”
Read Does Your Business Need Cyber Insurance? at the US Chamber of Commerce website CO.
Read Why Hackers Target Law Firms at the TimeSolv website.
When you have professional liability insurance coverage through Alta Pro Insurance, you’ll get the latest cyber news and tips to keep your law practice safe and successful. Have you seen our webinar series, “What Every Lawyer Needs to Know About Cybersecurity: Chapters 1-4,” available on demand and free on the Alta Pro Youtube channel? Cutting-edge risk management videos are just one of many advantages of membership in the Alta Pro Risk Purchasing Group. Here’s how to start enjoying the benefits.
4 Things to Consider When Choosing Cyber Insurance Policy
Here are some highlights from the US Chamber of Commerce article Does Your Business Need Cyber Insurance? The quotes are from the article’s author, Dan Casarella.
- Understand the different types of coverage. “When looking at cyber insurance policies, there are two main types of coverage,” writes Casarella. “First-party coverage covers the financial loss due to a data breach of the insured, while third-party coverage covers the financial loss resulting from a breach of other data, including that of your customers, partners, suppliers, vendors or other associates. Many policies use a hybrid of the two types of coverage.”
- Determine if you’re obligated to maintain cyber coverage. Some vendors, clients and third parties might require proof of cyber coverage before they do business with your firm.
- Do a risk assessment. “Assess what type of sensitive information you and your company collect, such as payment information, personal identification information or protected health information. This type of data in particular is a common target of cyber attacks. Other factors that put companies at risk include how much web interaction they have with customers, if their employees use their own devices at work and how much the business relies on confidentiality. Any company practicing one or more of these factors should make a robust policy a priority.”
- Know what events trigger your policy. “Like health and car insurance, certain terms and conditions must be met before coverage is triggered,” according to Casarella. “Determine if you need a policy with blanket coverage or one that focuses on specific types of attacks. If there are exclusions to your policy, it may not be triggered during certain attacks.”
SafeLaw Protection from Alta Pro
Alta Pro offers industry leading competitively priced cyber liability coverage in multiple states with an “A” rated, non-admitted carrier. We work with specialized underwriters and have the expertise to help you make a complicated product line simple to understand.
The SafeLaw program was built by lawyers to provide the comprehensive cyber risk insurance coverage and services law firms need. SafeLaw incorporates industry specific coverage components, a wrap structure that dovetails with lawyers professional liability coverage, and specialized law firm incident response and claims handling services.
If you practice in Wisconsin, Texas, Minnesota, Ohio, Illinois, Indiana or Michigan, you can stay on top of ethics and risk management news by being a member of Alta Pro Lawyers RPG. You’ll get access to free webinars, the Pro Practice Playbook, Reminger ProLink, Ask the Risk Pro and more. Here’s how to join.