In addition, many law practices are becoming increasingly reliant on the ongoing availability of computer systems and networked technology for their day to day activities, meaning the consequences of a cyber-attack resulting in a firm’s computer systems being damaged or taken offline could be severe.
The cyber risk policy will respond to cyber events such as ransomware and other disruption attacks. However, it is important to note that the cyber risk policy will not respond to problems unrelated to a cyber event which arise through failure to maintain a computer and/or network.
It is prudent for law practices to ensure that up-to-date antivirus protection is in place, and to undertake frequent back-ups to ensure data can be restored in the event of an uncontained cyber-attack.
The policy limit for each law practice is $50,000 for all cover under the policy during the period of insurance. The applicable excesses under the cyber risk policy are based on each practice’s gross fee income for the last complete year, and range between $1,000 and $25,000, as shown below.
Law practices should consider whether this limit and breadth of cover is sufficient for their individual needs. An insurance broker or professional adviser will assist in making this determination.
Regardless of size, all law practices should be aware of the privacy legislation because:
If your law practice falls into any of these categories it is required to comply with the new privacy regime.
Even if your law practice does not fall within this regime, protection of clients’ sensitive information is required under Solicitors’ Rules. Adequate cyber security protection is therefore an important component of modern legal practice.
As noted above, law practices can consider increasing the limit and breadth of cover under this policy in place of any existing cyber risk policy, or simply maintain it in its current form.
There will be no reduction in Lawcover PII premium paid by law practices if they choose not to utilise the cyber risk policy, because the policy is provided to insured practices without cost.
Phone: 1800 BREACH (1800 273 224)
The CBP Lawyers incident response team will assess the notified cyber event and advise the law practice whether coverage is available and if so, will act on a reservation of rights basis from that stage.
Lawcover is not the insurer for the cyber risk policy and notifications should be made directly to the CBP Lawyers incident response team as above.