ABA Journal reports on the increasing need for cyber liability insurance among law firms, as these firms increasingly “handle loads of sensitive, private data of clients, third parties and others in the course of conducting business.” ABA writes that the loss of such data “can have many negative repercussions, including lawsuits, regulatory investigations, fines and penalties, and the loss of a good reputation as a trusted fiduciary of client confidentiality.” AIG vice president of professional liability Chris Andrews tells ABA Journal, “Even if the failure doesn’t lead to an actual lawsuit, a firm may still need to deal with costs associated with notification, possible regulatory investigations, fines and penalties, forensic expenses, public relations expenses and more.” Andrews also says “Law firms are experiencing breaches with increasing frequency and in many different forms. We expect the number of lawsuits to rise over the next several years.”
From the news release of the American Association for Justice.
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