How Much Does Cyber Liability Insurance Cost For a Law Firm?

Feb. 29, 2016

Cyber Liability Insurance is completely affordable today for the smaller law firm with premiums for a $1,000,000 limit costing less than $1,000 for a sole proprietor, up to a 5 member firm with less than $250,000 in annual revenue. 6 or more attorneys up to $5,000,000 in revenue start at a minimum premium of $1,000. Not a lot to pay to protect your professional reputation and provide you with clear direction on how to respond, not if, but when a breach of confidential information occurs.

Professional Liability Insurance Policies are typically not enough coverage in the event your system is hacked or confidential client information is leaked.

Professional Liability Insurance Policies may provide some coverage if your client is harmed or you are faced with a regulatory fine and penalty but the actual business risks your firm will be faced with to identify the breach, contain it and recover lost data are usually not covered.

A stand-alone Cyber Liability Policy provides a separate limit of liability so that the firm’s professional liability limit is not depleted. NOTE: Not all cyber liability policies offer 1ST AND 3RD party coverage with  breach response assistance when the law firm needs it the most.

A stand-alone cyber liability insurance policy provides immediate access to Breach Response Experts:

• Security auditors at forensic companies to identify the source and scope of the data breach, aid in the recovery, restoration or replacement of data and software as well as removal of a hacker’s tools. These security partners should have the expertise to determine if the law firm is in compliance with current ethical and legal cyber security requirements.
  
• Public relation companies experienced in working with law firms and can effectively design and execute a tailored public response to the breach.
  
• Notification Services that will assist in the drafting and delivery of notifications to clients, opposing counsel, courts, State Attorney Generals, law enforcement and credit bureaus.
  
• Provide credit and internet monitoring services that will alert the exposed individual if nonpublic personal information has been made public.

Conclusion:

There are many ways a law firm’s confidential information may be breached from sophisticated malware attacks by hackers to unintentional internal mistakes like a stolen unencrypted laptop. Law firms are targets every day for breaches of confidential information which can result in lawsuits, regulatory fines, loss of reputation, loss of productivity and a loss of business. Ask your insurance agent or broker for a quote today.

Author

Cindy Wiedman, founded Wiedman Insurance Services, LLC (LiabilityPro Insurance Advisors*) August 1, 2014. Cindy is a Registered Professional Liability Underwriter (RPLU) and has designed and administered professional liability insurance programs over a 35-year career working for various insurance administrators in the Midwest such as Shand Morahan & Company, Kirke Van Orsdel, Marsh and Lockton Affinity.

*Currently working with investment advisory businesses domiciled in Iowa, Minnesota, Kansas, Illinois and Nebraska.