Not without separate privacy breach or breach response insurance also referred to as Cyber Liability Insurance. So, what does business insurance cover then? The foundation of business insurance is General Liability Coverage. General Liability insurance compensates you for attorneys’ fees, court costs, and settlements or judgments up to your limit of liability.
Busy professionals very often have a herd mentality when it comes to buying professional liability insurance. They buy from the same insurance company that everyone else buys from. The same is not always good, however.
An ABA Journal article strongly recommends that law firms take the additional step of purchasing cyber liability insurance, which adds another layer of financial protection in case of a breach. The bottom line...Law firms have an ethical and legal obligation to protect the confidential digital information.
Cyber Liability Insurance is completely affordable today 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.
Your professional liability claim history is the number one testament to your professional credibility and key to maintaining affordable professional liability insurance. If you have had claims or disciplinary actions made against you in the last five years, any new Insurer you apply to for coverage is going to require a loss run from the insurance company that you reported the matter to.
In the current information age, law firms routinely store and transmit non-public confidential data. A data breach can occur as a result of a lost iPad, cell phone, or laptop; a rogue employee, human error, or worse, a coordinated malware attack by hackers intending to hold your computer system and its' data ransom for money.
If you have received a notice stating that your professional liability insurance will not be renewed, you know exactly how petrifying this situation is. While receiving a non-renewal letter may leave you frantic, or looking for a new insurance company, you need to stop and take a deep breath. There are actions to take to get your proper coverage.