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Lawsuits Against Firms Handling Sensitive Data Expected to Rise

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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Bob Kraft

I am a Dallas, Texas lawyer who has had the privilege of helping thousands of clients since 1971 in the areas of Personal Injury law and Social Security Disability.

About This Blog

The title of this blog reflects my attitude toward those government agencies and insurance companies that routinely mistreat injured or disabled people. As a Dallas, Texas lawyer, I've spent more than 45 years trying to help those poor folk, and I have been frustrated daily by the actions of the people on the other side of their claims. (Sorry if I offended you...)

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