Disclosure of Private Information

Law Firm Claim Scenario: Disclosure of Private Information

Here’s an example of a law firm that accidentally had a disclosure of private information. We hope this claim example can help your practice avoid potential problems in the future by providing the details around the claim.  The following claim is related to a cyber liability insurance policy.

A woman purchased a used computer from a law firm that was selling old equipment. The computer still contained the personal records, including names, addresses, and social security numbers of prior companies, their officers, and even employees.

Loss: The cost of notifying affected parties per state law totaled nearly $110,000. Two lawsuits have been filed: one alleges damages over $200,000 from a party who claims she lost her job due to the disclosure; the second alleges that the plaintiff’s identity was stolen and that costs of correction and emotional distress will exceed $100,000.

Thankfully, in this case, the law firm in question purchased a cyber liability policy, which means their insurance company is currently handling the claim’s defense and may ultimately have to pay for the claims.

If you would like to find out more about obtaining a cyber liability policy for your company, please feel free to contact us.