Law firms face “a ton of challenges,” according to an update from Embroker.
Lawyers are focused on “ensuring their clients get the best possible outcome for their cases, requiring their full attention and dedication to justice.”
Unfortunately, that isn’t all that lawyers “have to deal with daily.” Embroker notes in a blog post that firms of all sizes “hold onto an immense amount of personal information that, if lost or misplaced, can result in a big law suit. While these incidents might seem rare, they’re far from it.”
As law firms become more digitized, the cyber realm “becomes an increasingly viable threat to the legal system writ large as well as for individual firms.”
According to the 2022 ABA Cybersecurity Tech Report, 27% of law firms “have experienced some form of security breach.”
Law firms are “uniquely attractive for cybercriminals due to the wide variety of sensitive and valuable information they store and have access to.”
Recent attacks on major law firms have targeted information such as:
- Personal client data like Social Security numbers as well as financial and health records
- Pending M&A deal documentation
- Intellectual Property information
- Tax Returns and other confidential tax-related documents
- Sensitive, highly damaging client information
- Data to inform insider trading
For this among other reasons, Embroker has “launched our first ever vertical offering built on the new ONE by Embroker platform: the Law Bundle.”
This bundle “combines law practices liability insurance with cyber risk insurance to protect firms from the risks of running a business as well as the increasing threat of cyber attacks.”
As Embroker Chief Insurance Officer, David Derigiotis, notes, cyber insurance for law firms is more important than you might think:
“Given the number of security incidents in 2022, effective cyber insurance for law firms has never been more business-critical. Unfortunately, many lawyers’ professional liability coverage doesn’t actually address their largest exposure areas – which includes cyber threats. Embroker’s new law bundle delivers a custom-built, transparent solution to better protect law firms from potential malpractice suits as well as fallout from increasingly prevalent cyber attacks.”
