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Cyberinsurance Considerations for Law Firms
As a profession, lawyers are notoriously slow in staying abreast of new technology. While bar associations and state regulatory boards have emphasized for years that attorneys have an ethical duty to stay abreast of current and developing technology, many attorneys and firms fail to keep up with the ever-increasing pace of technological change. Attorneys may be unaware of the potential risks involved in the use of multiple devices used to perform work — each device is subject to being lost, stolen or hacked. These risks increase if a firm has failed to encrypt personal or other sensitive information.
Over the past several years, several large law firms have disclosed they have been the target of hacks and data breaches. Recent studies have shown that up to 25% of firms with over 100 attorneys have suffered from a data breach. These breaches to the firm's (and potentially its clients') data may come from a one-off compromising of a stolen smartphone or from a targeted, system-wide hacking of a firm's network.
Law firms spend a lot of time and effort to protect their clients' interests, but often overlook routine protection and security of clients' (and their own) data. Law firms maintain and store a wealth of confidential data on behalf of clients, including tax information, financial statements, health records, deposition transcripts, records belonging to minor children, and intellectual property. This data is both highly sensitive and highly valuable to a potential hacker.
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