A new study by the Law Society of England and Wales found that 72% of law firms do not have cyber insurance. This is concerning, as cybercrime is a growing threat to businesses of all sizes.
Cyber insurance can help law firms cover the costs of a cyberattack. Such costs include investigating the attack, restoring data, and notifying clients. It can also help protect the firm from legal liability if a cyberattack results in a data breach.
Law Firms Go Unprotected From Cyber Crime
The study also found that purchasing professional indemnity insurance (PII) has become more difficult for law firms since 2018. This is due to several factors, including the increasing risk of claims and the rising cost of premiums.
The Odds Of Attack
Law Society President Lubna Shuja said of cyber insurance, “The latest government statistics show that one in 10 businesses (11%). This includes a quarter of medium-sized businesses and almost two-fifths of large businesses – experienced cybercrime in the last 12 months. Considering how much more work is being conducted online post-pandemic, the low take-up is concerning.”
The Law Society is encouraging law firms to start budgeting for increased PII premiums and to consider premium financing as a way to spread the costs. The Society is also recommending that firms start the cyber insurance renewal process early, at least three months before their renewal date.
If you are a law firm, you should seriously consider purchasing cyber insurance. It is an important way to protect your business from the financial and reputational damage that can result from a cyberattack.
Here are some additional tips for law firms on cyber security:
- Implement strong security measures, like firewalls, antivirus software, and data encryption.
- Train employees on cyber security best practices.
- Have a plan for responding to a cyberattack.
- Stay up-to-date on the latest cyber threats.
Source: Seven in 10 firms don’t have cyber insurance.
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