Law firms show concern about cyber risks
A recent article in National Underwriter points out that a tough economy tends to lead to more claims against law firms. It stands to reason that Employment Practices Liability and Malpractice claims are on the rise, however, the abundance of capacity in the insurance marketplace for these lines of cover remains strong. The new addition of claims seems to be many insurers developing new coverages to address issues brought about by the ever-changing use of technology by law firms in the servicing of their clients.
Insurers are now crafting network security coverages on a stand-alone basis to respond to cyber-related claims. These policies include coverage for third-party claims arising out of breaches, the impact of an adverse effects on the reputation of the law firms, and first party costs associated with cyber risks including the expenses involved to determine “what went wrong” and the costs associated with notification of clients.
Please contact us for further advice on purchasing insurance for a Professional Services firm.
About the Author
Lynne Ahearn is Senior Vice President at WGA, working with clients to provide innovative risk management and insurance advice to the Professional Services sector.