Lawyers and law firms handle a treasure trove of sensitive data, including data on their client’s intellectual property, personal information on employees, and health or financial data of parties involved in litigation. If that data gets into the wrong hands, either by way of a malicious attacker or a careless employee, law firms need to be cognizant of potential professional liability issues. One critical risk management tool is cyber liability insurance. Cyber insurance offers many benefits and coverage not available under a typical professional liability policy. Law firms should carefully evaluate what coverage their existing policy offers to identify any gaps and to assess their risk profile in the wake of a data crisis.
By Valerie B. Barnhart, Esq.