Lawyers Increasingly Seeking Cyber Liability Coverage
It’s no secret that businesses in multiple industries have seen an influx of cyber-attacks, hacks, and data breaches in the last decade. This has left many lawyers concerned, considering their vulnerability to loss. Large firms, according to a recent Business Insurance article, have already begun utilizing cyber liability and Lawyer Privacy and Network Security programs; programs that are used to notify clients or employees of a breach, conduct a forensic investigation, and, if necessary, write checks to plaintiffs or regulators. Smaller firms, however, have not been quick to obtain this coverage. But, they should be, especially considering the numerous cyber liability scenarios that could arise in their course of business.
According to a survey of insurance claims published by Philadelphia-based NetDiligence, 10% of cyber liability claims that happened in 2014 originated in the professional services industry; legal firms included. The average cost for a claim in the professional services industry? $230,000, not to mention the loss of reputation and potential clients. The premium for a cyber-liability policy for a large firm is typically between $40,000 to $75,000 annually, while one for a smaller firm might be between $3,500 to $7,500, depending on the amount covered by the policy.
It’s important for your legal clients to look at the bigger picture when it comes to their insurance coverages, especially in the cyber security realm. While insurance costs are concerning for any business, big or small, your clients should ask themselves, “Can I afford to go without coverage?” The answer is more than likely going to be no.