Do law firms need cyber insurance? | Embroker

Do fish need water? Do humans need air? Do law firms need cyber insurance?

Not 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 today’s work, and the total cost of damage caused by cybercrime is expected to reach Will reach US$10.5 trillion by 2025.

But you don’t need to panic. That is, if you have cyber insurance. Don’t you? Well, we’ve got you covered. Here’s everything you need to know about what law firm cyber insurance will cover, what it won’t cover, and how to get it.

Common types of cyber attacks

Before we get into the details of your company’s cyber insurance, let’s take a quick look at the types of cyberattacks you might face.

• Phishing Phishing is probably the most common type of online threat. Phishing can take the form of text messages, spoofed emails and websites that trick individuals into downloading malware or giving up personal information.In the phishing category you may come across Different types of attacks.
  • Spear phishing Use information from social media, public databases, or previous breaches to obtain your sensitive information. whaling is another form of phishing that targets senior or well-known employees. Scam or Phishing You need to call or leave a voice message pretending to be a reputable source.
  • Unfortunately, as Artificial Intelligence (AI) Each of these methods becomes increasingly difficult to discover as they become more popular and sophisticated — This is true even for the most tech-savvy among us.
• malware It is another type of online threat that is usually spread through malicious websites, emails and software. It may be hidden in file archives or archives in unusual formats. Users may inadvertently install malware when they click on links in phishing emails or download and install malware. Install software from reputable websites. Infected USB drives or visits to malware-infected websites can also spread viruses to your device.This is so common that 94% of organizations An email security incident has been reported.
• A Distributed Denial of Service (DDoS) Attack A DDoS attack occurs when multiple devices are used to flood a target system, network, or website with traffic, acting like an unexpected traffic jam blocking a highway — It blocks regular traffic from reaching its destination. This strategy exceeds the target’s ability to handle legitimate requests, rendering it inaccessible to legitimate users.

There are of course 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 encountered it yet. Here’s how a cyber threat insurance policy can help.

What Cyber ​​Insurance Covers and Why Law Firms Need It

cyber insurance For law firms, it should be taken for granted, required, and non-negotiable. As a lawyer, we know you like to use every possibility. So, let’s look at the facts. If you have time, watch the video below and more.

A cyber insurance policy and appropriate security measures must be a fundamental part of a law firm’s risk management strategy. In the event of a data breach, ransomware or other cyberattack, you will receive financial coverage against the direct costs of damage to your business, as follows: and any resulting litigation.

Purchasing insurance for your law firm will allow you to reduce the online reputational and operational damage your business suffers if it is attacked. It can cover potential litigation, credit monitoring services, data breach response, forensic investigations, notifications to affected parties, legal fees and other costs and losses, ransomware payments, regulatory fines and business interruptions may all be covered by cyber insurance Covered.

There are two cyber risks you need to make sure your cyber insurance policy covers:

1. First-party cyber risk

This risk involves the direct financial impact of a vulnerability in a network or system or a cyberattack. Coverage will apply to costs associated with recovering data, lost revenue from downtime, crisis management, forensic investigations, and more.

1. Third-party cyber risks

This risk involves liability claims against your business in the event of a breach. Coverage will apply to defense and litigation outcomes in the event of a cyberattack.

Law firms can choose first-party coverage, third-party coverage – or a combination of the two. Not sure what’s best for your business? To chat live with one of our experts to get some advice, just click on the chat bubble in the lower right corner of your screen. Even if you’re not ready to make a decision, our experts are here to assist you.

What Law Firm Cyber ​​Insurance Does Not Cover

Cyber ​​insurance coverage will cover most costs associated with an attack, but will typically not provide coverage for property damage or intellectual property theft. While insurance will help your company recover, it’s always best to avoid cyber threats in the first place.

Here is an article on how to do it Improving cybercrime protection Provide assistance to your business to help you identify risk factors in your business ——You will also find Advice on developing a risk management plan.

What happens if you as a law firm don’t have cyber insurance?

Not having cyber insurance is a significant threat to the longevity of your company. Law firms are prime targets for cyberattackers because they handle large amounts of personal information. Additionally, conducting business without proper protection is negligent and may result in fines.

If attackers gain access to personal or confidential information through email phishing attempts, malware, or DDoS attacks, your customers’ data is at risk and may be compromised. As a result, they may sue your company. As a lawyer, you want to represent your clients in legal disputes and not become a defendant in your own case.

Not to mention that your reputation may be damaged in the process: if word gets out that your company has been hacked and customer data has been lost, new customers may be tempted to avoid working with you.

Law Firm Cyber ​​Insurance Costs

Average insurance network costs may hover around USD 1,500 per year, USD 1 million coverage, with a deductible of $10,000.That being said, different companies can Pay more or less Its coverage depends on several key factors.

These factors often include:

• The size of your law firm
• The amount of sensitive data you use
• your annual income
• Current risk management practices
• Your policy terms

If you have purchased cyber insurance before and are looking for a new provider, share your history with the new provider as soon as possible. Lower or no claims in the past can help lower your rates. Keep in mind that by taking the proper precautions and spending some time, upfront funding may end up saving you more in the long run.

So, do law firms need cyber insurance? certainly.like restrictions opposed in court, the cyber threats within your company are limitless.Look for insurance provider They’ll understand the unique cyber risks and challenges you face so they can help you design the perfect plan. Make sure the insurance company you consider covers the right things, including mitigating losses from data breaches, business interruptions and network damage.

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