Cyber insurance helps safeguard your business against financial losses resulting from a data breach involving sensitive client information, such as Social Security numbers, credit card numbers, and legal records. This type of insurance can cover first-party costs, such as forensic investigation and notification expenses, as well as third-party claims related to the unauthorized disclosure of personal or confidential data.
In addition to protecting your business’s financial health, cyber insurance can also protect your corporate reputation by helping to cover the costs of managing a data breach, such as public relations and crisis management efforts.
Overall, cyber insurance is an important tool for protecting your business against the costs and legal liabilities associated with a data breach.
Understanding Cyber Liability Insurance
General liability insurance (GLI) is a type of insurance that protects businesses against third-party claims of bodily injury, property damage, and personal injuries, such as defamation or false advertising. This type of insurance does not typically cover cyber liability, which refers to the financial and legal consequences of a cyber attack or data breach. So be sure to check your policy because cyber liability coverage is usually not included in your General Liability policy.
To protect against cyber liability, businesses typically need to purchase a separate cyber insurance policy. Cyber insurance can assist with coverage related to the costs associated with responding to a cyber attack or data breaches, such as notification expenses, legal fees, and credit monitoring for affected individuals. Some cyber insurance policies also provide coverage for business interruption and the loss of revenue resulting from a cyber attack.
In summary, general liability insurance does not typically cover cyber liability, and businesses often need to purchase a separate cyber insurance policy to protect against the financial and legal consequences of a cyber attack or data breach.
Why Law Firms are at Risk for Cyber-Attacks
Law firms have a unique set of vulnerabilities when it comes to cybersecurity. As a result, they are particularly at risk of cyber-attacks and data breaches. This is because law firms often handle sensitive and confidential client information, making them a valuable target for cybercriminals. In addition, law firms may also be required to comply with strict data protection regulations.
Mason-McBride has partnered with a select group of reputable insurance companies for premier business insurance coverage that you can afford. Our commitment is to work with you as a long-term partner and provide counsel based on your overall business strategy.
When Comparing Policies, Ask The Following Questions:
- What are the deductibles? Be sure to compare deductibles closely among insurers, just like you do with health, vehicle, and facility policies.
- Does the insurance company offer one or more Cyber Liability Insurance policies, or is the coverage simply an extension to an existing policy? In most cases, a stand-alone policy is best and more comprehensive.
- How do coverage and limits apply to both first and third-parties? For example, does the policy cover third-party service providers? On that note, find out if your service providers have Cyber Insurance and how it affects your agreement.
- Does the policy cover any attack on which an organization falls victim or only targeted attacks against that organization in particular?
- Does the policy cover non-malicious actions taken by an employee? This is part of the E&O coverage that applies to Cyber.
- Does the policy cover social engineering as well as network attacks? Social engineering plays a role in all attacks, including phishing, spear-phishing, and advanced persistent threats (APTs).
- Because APTs take place over time, which can be months to years, does the policy include time frames for coverage?
Mason-McBride: Your Trusted Partner in Cyber Insurance
At Mason-McBride, we pride ourselves on being a locally-owned company. We offer personalized counsel that is tailored to your specific needs, and we have a wealth of experience in the industry, which allows us to provide proactive service.
In addition to our commitment to client service, we also understand the unique vulnerabilities that law firms face when it comes to cyber threats. When you work with Mason-McBride, you can trust that you will receive top-quality service to help you navigate the complex world of cyber insurance.
Get a Custom Cyber Insurance Quote for Your Law Firm
Our cyber liability team is happy to answer all your questions. In addition, our agent will identify your business’ cyber risks and develop custom and appropriate coverage to reduce your exposure.
Start a quote online or give our office a (248) 822-7170.