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Do fish need water? Do humans need air? Do law firms need cyber insurance?
I don’t want to oversimplify the answer to the question, but yes. Cyber insurance should be considered essential. This is because cyber risk is an inherent part of work today and the total cost of damages caused by cybercrime is expected to increase. reach 10.5 trillion dollars in 2025.
But you don’t have to panic. That is, if you have a current cyber insurance policy. Dont do it? Well, we’ve got you covered. Here’s everything you need to know about what your law firm’s cyber insurance will cover, what it won’t, and how to get it.
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Common types of cyber attacks
Before we get into the details of cyber insurance for your business, let’s take a quick look at the types of cyber attacks you may face.
- Identity fraud may be the most common type of cyber threat. Phishing can take the form of text messages, deceptive emails, and websites that trick people into downloading malware or providing personal information. And within the phishing category you can find different types of attacks.
- Spear phishing leverages information from social media, public databases, or previous breaches to access your sensitive information. Whaling is another form of phishing that targets senior or high-level employees. crushing either dressing It involves making phone calls or leaving voicemails while pretending to be a trusted source.
- Unfortunately, as artificial intelligence (AI) grows in popularity and sophistication, each of these methods is becoming more difficult to detect — even for the most tech-savvy among us.
- malware It is another cyber threat that is usually distributed through malicious websites, emails, and software. It may be hidden in document files or files of unusual format. Users can inadvertently install malware when they click on a link in a phishing email or when they download and install software from a website that does not have a good reputation. An infected USB drive or visiting a malware-infected website can also spread the virus to your devices. It is so common that 94% of organizations have reported email security incidents.
- TO Distributed denial of service (DDoS) attack It occurs when multiple devices are used to flood a target system, network, or website with a large volume of traffic. A DDoS attack acts like an unexpected traffic jam that clogs the highway — prevents regular traffic from reaching its destination. This tactic overwhelms the target’s ability to handle legitimate requests, making it inaccessible to legitimate users.
Of course, there are other forms of cyber threats, but the above are the most common. You can imagine encountering one or more of these attacks in your daily work. If you haven’t already. Here’s what a cyber insurance policy can do to help.
What Cyber Insurance Covers and Why Law Firms Need It
Cyber insurance For law firms it should be a fact, a requirement, something non-negotiable. As a lawyer, we know that you love to pursue all possibilities. So, let’s review the facts. If you have time, watch the video below for even more information.
A cyber insurance policy and appropriate security measures should be critical components of your law firm’s risk management strategy. In the event of a data breach, ransomware, or other cyber attack, you will receive financial coverage for the direct cost of the damage to your business, as well as any lawsuits that may arise from one.
Having cyber insurance for your law firm will allow you to reduce the reputational and operational damage that your business will experience in the event of an attack. You may pay the cost of potential lawsuits, credit monitoring services, data breach response, forensic investigations, notification to affected parties, legal fees, and other expenses. Additionally, ransomware payments, regulatory fines, and business interruption losses may be covered by cyber insurance.
There are two types of cyber risks that you will want to make sure your cyber insurance policy covers:
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Own cyber risk
This type of risk involves the direct financial impact of a breach or cyberattack on your network or system. Coverage will apply to fees associated with data restoration, lost revenue due to downtime, crisis management, forensic investigations, and more.
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Third Party Cyber Risk
This type of risk involves liability claims against your company in the event of non-compliance. The coverage will apply to the defense and outcome of lawsuits in the event of a cyber attack.
Law firms can choose to have in-house coverage, third-party coverage, or a combination of both. Not sure what’s best for your business? To chat with one of our live experts and get some advice, simply click on the chat bubble at the bottom right of your screen. Our experts are always here to help you, even if you’re not ready to make a decision yet.
What Cyber Insurance Doesn’t Cover for Law Firms
Cyber insurance coverage will cover most expenses associated with an attack, but generally will not provide coverage for property damage or theft of intellectual property. And while insurance will help your business recover, it’s always best to avoid a cyber threat in the first place.
Here is an article on how improve protection against cybercrime for your business that will help you identify risk factors within your business — you will also find Advice on creating a risk management plan.
What if you don’t have cyber insurance as a law firm?
Not having cyber insurance is a major threat to the longevity of your business. Law firms are prime targets for cyber attackers due to the amount of personal information they need to handle. Additionally, operating without proper protection is negligent and could result in fines.
If an attacker accesses personal or sensitive information through an email phishing attempt, malware, or DDoS attack, your customer data is at risk and could be compromised. As a result, your company could be sued. As a lawyer, you want to represent your clients in legal disputes, not be the defendant in your own case.
Not to mention, your reputation could be damaged in the process: If news breaks that your company was hacked and customer data was lost, new clients may want to avoid working with you.
Cost of Cyber Insurance for Law Firms
The average cost of cyber insurance can be around $1,500 per year for $1 million in coverage, with a deductible of $10,000. That said, different companies can pay more or less for your coverage depending on several key factors.
These factors commonly include:
- The size of your law firm
- The amount of sensitive data you work with
- Your annual income
- Current risk management practices
- Terms of your policy
If you’ve had cyber insurance before and are looking for a new provider, share your history with your new provider as soon as possible. Having low or no claims in the past can help lower your rates. Remember that taking the right precautions and spending some money up front could end up saving you a lot more in the long run.
So do law firms need cyber insurance? Of course. As with the limit of objections in the courtroom, the cyber threats within your company are endless. Look for an insurance provider who will understand the unique cyber risks and challenges you face so they can help you design the perfect plan. Make sure the insurance company you’re considering covers the right things, including mitigating losses from data breaches, business interruptions, and network damage.
A+ rating sure, tailor-made to the needs of your law firm. As you grow, we protect you.
Get the right coverage at the best price.
Find a policy
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