Tag: cyber liability insurance

Cyber Liability Protection

Cyber Liability protection is a coverage that is becoming more and more important, but very few people understand what the coverage actually is and how it can protect your law firm.   With that in mind, we have put together a quick summary of the standard coverages included in this type of policy.

What Does It Cover?

A standard cyber liability insurance policy provides the following coverages:

• Coverage for damages to third parties caused by a breach in your network’s security.
• Coverage for loss resulting from administrative or operational mistakes can include an employee’s acts, business process outsourcing (BPO), or outsourced IT provider.
• Breach of Privacy coverage includes damages resulting from alleged violations of HIPAA, state, and federal privacy protection laws and regulations.
• Coverage for expenses resulting from a breach of consumer protection laws such as the Fair Credit Reporting Act (FCRA).
• Customer Notification Expenses coverage (usually included as a sub-limit) – reimburses for costs to notify the customer of a breach and provide 12 months of credit monitoring.
• Coverage for acts of a rogue employee causing intentional damage to your firm’s computer network.
• Public Relations Expenses coverage is available to repair your firm’s reputation due to a data breach.
• Cyber Extortion reimbursement costs for a range of perils, including a credible threat to introduce malicious code, pharm and phish customer systems, or to corrupt, damage, or destroy your firm’s computer system.
• Electronic Media peril is broadly defined as an infringement of domain name, copyright, trade name, slogan, or service mark on the internet or intranet site.
• Interruption expenses include additional costs associated with rented/leased equipment, use of third-party services, additional staff expenses, or labor costs directly resulting from a covered Loss of Digital Assets claim.

If you would like to receive a cyber liability insurance quote for your law firm, please give our office a call and we can help provide you with multiple insurance quotes to fit your firm’s needs.

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.