In a world where almost every business has an online presence and data and information is exchanged at unprecedented rates, the risk of cybercrime has become a significant concern for organisations of all sizes.
Solicitor firms, in particular, handle sensitive client information and legal documents, which makes them prime targets for cyber attacks.
Not only can a cyber attack be financially devastating, but the reputational damage and potential legal liabilities it can cause are sometimes impossible to recover from. For that reason, cyber insurance is a crucial safeguard for all solicitor firms to mitigate the risks associated with cyber incidents.
Do solicitor firms need cyber insurance?
The legal sector increasingly relies on technology and online communication to conduct business efficiently. However, with that reliance comes vulnerability to cyber threats, including ransomware attacks, data breaches and phishing scams.
So, solicitor firms of all sizes must recognize the importance of adequate cyber insurance coverage.
Regardless of how robust and thorough you have tried to make your cyber security measures, no system is entirely safe from attack by cybercriminals. Cyber insurance provides a safety net that helps solicitor firms recover from the financial losses and legal implications of a cyber incident and demonstrates to your clients that their personal data is safe.
What are the cyber essentials for solicitors?
Before you take out cyber insurance coverage for your legal firm, there are certain vital steps you can take to protect yourself from online criminals and fraudsters:
All your staff members should be trained on cybersecurity best practices, including creating strong passwords and changing them regularly, recognizing potential online threats, and identifying phishing emails.
All sensitive client data held on your systems and network should be encrypted to prevent unauthorised access, even if a cyber breach happens.
Be sure to regularly backup your critical data so that you can maintain the continuity of your business operations in the event of a data loss or ransomware attack.
Multi-factor authentication (MFA)
Implement multi-factor authentication for all your client’s accounts to add an extra layer of security in addition to passwords.
Keep your firm’s network secure with firewalls, intrusion detection systems and regular security audits.
Incident response plan
Develop a comprehensive incident response plan that details the steps you need to take in case of a cyber incident and ensure all your key staff know how to implement it.
Vendor due diligence
Cyber criminals often get into business networks via third-party systems, so be sure to vet all your contractors and service providers to ensure they have robust cybersecurity measures in place.
What cover does cyber insurance provide for law firms?
Cyber insurance provides a range of coverage options that you can tailor to meet the unique needs of your legal business. The key components of cyber insurance for solicitor firms typically include the following:
Data breach coverage
Data breach coverage typically covers the costs associated with managing and recovering from a serious data breach, including notifying any affected parties, providing credit monitoring services and addressing any legal liabilities that arise from the breach.
Cyber insurance coverage can assist in paying ransom demands made by cyber criminals and covering the costs of restoring your systems after a ransomware attack.
When a cyber incident disrupts your solicitor firm’s operations, business interruption coverage helps to compensate for any lost income and additional expenses required to get your business up and running again.
Legal and regulatory costs
Cyber insurance can cover the legal expenses that can be incurred following a cyber incident, including regulatory fines and defence against lawsuits.
Cyber extortion coverage helps your firm manage the costs and demands that can be associated with cyber extortion, where online criminals threaten to release sensitive information unless a ransom is paid.
Cyber forensics and investigation
Cyber insurance policies often cover the costs of hiring experts to investigate a cyber attack and identify the extent of the breach.
Following a cyber incident, solicitor firms can experience serious damage to their reputations, and cyber insurance helps to manage the public relations and marketing efforts necessary to rebuild your clients’ trust.
How much does cyber insurance cost for solicitors?
The cost of cyber insurance for solicitor firms varies considerably based on several factors, including:
- The size of your firm
- The volume of sensitive data you handle
- The level of cyber security measures you have in place
- The coverage limits you require
Generally, cyber insurance premiums are strongly influenced by the following:
Risk assessment – Insurance companies will assess your solicitor firm’s cyber security practices and look at any historical data breach incidents to determine the level of risk of future attacks.
Coverage limits – Generally, the higher the coverage limit you want, the higher premium you will pay, as the insurance company will have to pay out more in the event of a significant cyber incident.
Industry-specific risks – The nature of the legal sector in which your business works and the type of data you handle can influence the premium you will pay.
Deductibles – If you choose a higher deductible, that can lower the premiums you pay but will typically increase the firm’s financial burden in case of a claim.
Security measures – If you can show the insurance company that you have put in place robust cyber security measures, you might qualify for a discounted premium.
Policy add-ons – Opting for additional coverage commerce, such as social engineering fraud or cybercrime coverage, will impact the final premium.
Cyber Liability Insurance for Law Firms
As technology continues to evolve, so do cyber threats, and solicitor firms must take steps to protect their client’s sensitive information and financial assets from online criminals by investing in cyber insurance.
At Stanmore Insurance, we understand the complex risks faced by solicitor firms in the digital age. Our expert team can tailor cyber insurance solutions to meet your firm’s specific needs and give you the peace of mind to focus on serving your clients without worrying about possible cyber threats.
Contact us today at 01204 570370 to learn more about how cyber insurance can safeguard your practice and to get a free, no-obligation quote.