Did you know that Data breaches occur every day? Hacking of your client’s sensitive information is just a few keystrokes away. As a Law Firm you handle loads of private and sensitive information from health information to credit cards to social security numbers. Compromised information could cost your Law Firm thousands to millions of dollars in costs. Why not protect these breaches with Cyber Liability Insurance?
News by the Numbers
- Three out of four incidents of hacking comes from human error
- 40% of data breach cases are from people making mistakes, such as a lost laptop, cell phone, and flash drives.
- 36% are system glitches, such as software updates, which inadvertently expose private files
- 24% are malicious and criminal attacks.
The effects of a cyber hack to your Law Firm could grind business to a halt. Law Firms, like any other business, are held responsible for credit monitoring and more. In a 2013 study done by Ponemon Institute found the average post-breach cost is $188 per record.
It Can Never Happen to your Law Firm
A law firm customers’ case file containing HIPPA information was stolen from a hacked server costing the Law firm over $44,000.
A Law Firm employee had a laptop stolen from a parked car containing over 4,000 records. The total cost of this breach was $275,200.
“It takes 20 years to build a reputation and five minutes to ruin it.”
How does Cyber Insurance Work?
Regulations require businesses to notify all affected clients of a data breach. This requires a law firm to hire a forensic team to analyze the extent of the breach. These costs, along with fines and penalties, can run thousands to tens of thousands of dollars. Cyber Liability Insurance will cover these costs up to the policy limits. It’s important to work with an experienced agency to make sure you have the proper limits to cover these costs.
In addition to notification, credit-monitoring services for the affected clients is now a standard practice for a minimum of 12 months following the data breach. With average credit monitoring costs of $80 per client, these costs could seriously damper a firm’s financials. A standard Cyber Liability policy would pay for these costs up to the policy limits.
Most Law Firms are aware of the costs associated with the fines, penalties, notifications, and monitoring costs, but what about Business interruption? A cyber hack, in most cases, will lead to business interruption. Servers and computers may have to be replaced costing additional financial losses. Many Cyber Liability policies today will coverage these costs and get your Law Firm back up and running.
Then there is the newest in Cyber Hacking Warfare…Extortion. In 2016 17% of all cyber attacks involved blackmail or extortion. This can be more damaging then all the rest. We all remember when the Sony Pictures hacker released not only sensitive information, but embarrassing emails. Cyber Liability Insurance will not cover those embarrassing emails, but will pay the costs associated with the extortion fees up to policy limits.
Barbee Jackson Insurance can help Law Firms find the right Cyber Liability Insurance to cover against this growing concern. Call one of our Cyber specialists today to help you find the right coverage at the right price (850) 389-2001 or click on the icon below on your smartphone.