It’s common knowledge that law firms acquire a wide variety of sensitive data as it pertains to clients, prospective clients, and employees.
That being said, clients expect the firm they work with to have robust cybersecurity protocols in place.
Not only does a data breach have the ability to negatively impact a firm’s business reputation, however, your firm’s sensitive data being held hostage by ransomware could also be disastrous.
For over 20 years, ArchonOne has helped several law firms invest in the right network security for their needs. Through assessing a firm’s security posture, ArchonOne can determine what’s needed to help protect their confidential data.
While several attorneys and law firms across the country have started prioritizing cybersecurity measures, it can be challenging for clients to tell if the firm they’re working with is abiding by standard CIS best practices.
Here’s a checklist of cybersecurity best practices every law firm should implement:
- Recurring risk assessments
- Password management
- Routine data backups and offline storage
- Cybersecurity awareness training
- Cloud-based Law practice management solutions
- Encryption of sensitive data
Aside from implementing these best practices, law firms should also consider the importance of cybersecurity insurance.
What is Cybersecurity Insurance?
Cybersecurity insurance provides financial coverage to help law firms recover from a data breach, ransomware attack, or any other type of malicious attack resulting in either financial or reputational damage.
It’s important to note that cybersecurity insurance does not cover physical property damage or the loss of intellectual property.
When it comes to cybersecurity insurance, there are two types of coverage that apply to law firms:
First-Party Cyber Liability Insurance
First-party cyber liability insurance offers courage for the direct impact of a cyberattack on a network or system.
This includes:
- Fees associated with recovering data
- Forensic investigations
- Any form of income lost during downtime
Third-Party Cyber Liability Insurance
Third-party cyber liability insurance protects firms from liability claims if a data breach occurs.
This includes:
- Payments to clients
- Regulatory fines for non-compliance
Depending on a law firm’s current circumstances or risks, they can carry one or both forms of coverage.
Do Law Firms Need Cybersecurity Insurance?
Cyber risks can come in many forms such as an employee at your firm accidentally opening a phishing email that leads to a fraudulent website. Regardless of the circumstance, it’s prevalent for firms to ensure they are protected.
Cybersecurity insurance not only helps minimize the financial impact of cyber attacks but it helps protect all the work your firm has completed over the years.
Consider how costly it may be if a cyber attacker forced your firm to pay a hefty ransom to recover the essential data they stole to stay in business. While cyber insurance is not a cure-all for all cyber risks, it’s still worthwhile if an event of a network security failure.
If you’re a small law firm, it can be very easy to overlook the importance of cybersecurity insurance when your main focus may be on saving money and investing in your own firm.
Keep in mind that an essential part of long-term success is cybersecurity.
What to Look for in Cybersecurity Insurance
Any law firm or business that stores sensitive information online should strongly consider cybersecurity insurance.
First, consider what it is your law firm needs from a cybersecurity insurance provider. For instance, how many cybersecurity risks does your law firm currently have?
Cybersecurity insurance providers offer a variety of coverage options at different premiums. The longer the list of security vulnerabilities your firm has, the more your firm should consider paying a premium price to work with a reputable Managed IT provider.
Additionally, cyber insurance providers tend to package policies differently. Ensure your law firm determines what level of protection is required before considering the available options, payout limits, and terms.
Is Your Law Firm Ready for Cybersecurity Insurance?
The fact that your firm is even considering cybersecurity insurance means you are on the right track.
With the wealth of sensitive information that law firms amass, there’s no question that law firms need protection like any other business.
If your firm is looking to implement a robust cybersecurity protocol, ArchonOne can help you navigate the process step-by-step. Schedule a free demo today to learn more about cyber liability insurance and what your firm’s security needs are.