Feb. 29, 2016
Cyber Liability Insurance is completely affordable today for the smaller law firm with premiums for a $1,000,000 limit costing less than $1,000 for a sole proprietor, up to a 5 member firm with less than $250,000 in annual revenue. 6 or more attorneys up to $5,000,000 in revenue start at a minimum premium of $1,000. Not a lot to pay to protect your professional reputation and provide you with clear direction on how to respond, not if, but when a breach of confidential information occurs.
Professional Liability Insurance Policies may provide some coverage if your client is harmed or you are faced with a regulatory fine and penalty but the actual business risks your firm will be faced with to identify the breach, contain it and recover lost data are usually not covered.
A stand-alone Cyber Liability Policy provides a separate limit of liability so that the firm’s professional liability limit is not depleted. NOTE: Not all cyber liability policies offer 1ST AND 3RD party coverage with breach response assistance when the law firm needs it the most.
There are many ways a law firm’s confidential information may be breached from sophisticated malware attacks by hackers to unintentional internal mistakes like a stolen unencrypted laptop. Law firms are targets every day for breaches of confidential information which can result in lawsuits, regulatory fines, loss of reputation, loss of productivity and a loss of business. Ask your insurance agent or broker for a quote today.
Cindy Wiedman, founded Wiedman Insurance Services, LLC (LiabilityPro Insurance Advisors*) August 1, 2014. Cindy is a Registered Professional Liability Underwriter (RPLU) and has designed and administered professional liability insurance programs over a 35-year career working for various insurance administrators in the Midwest such as Shand Morahan & Company, Kirke Van Orsdel, Marsh and Lockton Affinity.
*Currently working with investment advisory businesses domiciled in Iowa, Minnesota, Kansas, Illinois and Nebraska.