CYBER INSURANCE FOR SOLICITORS

CYBER INSURANCE PROTECTION FOR SOLICITORS

Safeguard your legal practice against cyber exposures by arranging cover with a specialist insurance partner.
Benefit from insurance protection that is tailored to your needs and receive proactive risk management advice.

Law firms are an attractive target for cyber criminals due to holding sensitive client information, handling substantial funds, and being an important facilitator of business transactions.

According to the National Cyber Security Centre’s Legal Report produced in July 2018, the most significant cyber risks encountered by law firms are phishing scams, data breaches, ransomware and supply chain compromise.

Such risks led to:

  • £11 million of client money being stolen due to cyber-crime during the preceding 12 months
  • 60% of law firms having experienced an information security incident in the last year – an increase of 20% over the previous year

Source: Law Society

Why You Need Cyber Insurance

As a firm of solicitors, if you suffer the effects of a cyber incident what insurance protection would you have? 

The table below describes a number of cyber events and confirms for each whether or not the consequences are covered under the Professional Indemnity Minimum Terms. 

Cyber Event
Covered by Professional Indemnity (SRA Minimum Terms)
Covered by Comprehensive
Cyber Insurance Policy?

Data Breach Costs Including:

·         Specialist legal advice expenses

·         Forensic investigation expenses

·         Notification costs

·         Public Relations (Crisis Management) Expenses

 

No

No

No

No

 

Yes

Yes

Yes

Yes

Data Restoration Cost No Yes
Business Interruption No Yes
Cyber Extortion No Yes
Cyber Deception Loss Reimbursement (for example, theft from Office Account) No Yes
Liability to Employees and Partners arising from security and privacy breaches No Yes
Media Liability (Defamation/ Infringement of IP Rights) Yes Yes
Liability to Third Parties arising from Security and Privacy Breaches Yes Yes
Regulatory Fines and Penalties (where insurable by law) Yes Yes
Defence Costs for Regulatory Fines and Penalties No Yes

Your Own Consequential Losses:

·         System Damage

·         Business Interruption

·         Data Recreation

·         Consequential Reputational Harm

·         Hardware repair and Replacement

 

No

No

No

No

No

 

Yes

Yes

Yes

Yes

Yes

 Source: Adapted from Law Society, Cyber insurance guidance for law firms, 10 October 2016

Insure Your Cyber Exposures Under a Specialist Insurance Policy

As you can see from reading the above table,  your Professional Indemnity insurance exists to principally protect your clients’ interest –  it is not designed to provide protection for your own business risks.

  • A comprehensive Cyber insurance policy will provide your firm with significant protection to get your business back up and running quickly following a system breach and data losses, as well as cover the financial consequences that your business would experience following a cyber event.
  • The cost of a wide-ranging Cyber insurance solution that would provide your firm with such indispensable protection is far less than you think, as premiums start from as low as £500 (increasing to £1,000 if Cyber Crime cover is arranged).
  • The insurance market offers a wide range of Cyber insurance products and so it is very important that you work with a broker that can arrange a policy that provides the scope of cover that your practice needs.

Konsileo has provided cyber insurance solutions for a variety of business sectors – including for Solicitors, where we ensure that the cover dovetails with that under your Professional Indemnity insurance policy, for example in relation to client money losses. Please contact us today to obtain a no obligation quote.

Other Insurance Solutions for Solicitors

Meet The Expert

For more information about how we can help, please get in touch with our Solicitors Insurance specialist.

Chris Fitzgerald

Chris Fitzgerald

Solicitors Insurance Specialist

Email Chris

07545 929 901