It's been a wild year for cybercrimes, with allegations of phone hacking at Rupert Murdoch's media empire, and the arrest of 14 people for alleged attacks on PayPal's website in retaliation for its decision to suspend WikiLeaks' accounts. The U.S. Senate, International Monetary Fund, Lockheed Martin, Citigroup, Google, and Sony were among organizations that disclosed hacker attacks, reported Reuters.
It all may be falling far too close to home for BigLaw firms and corporate counsel, who are beginning to shop for — or at least ask a lot of questions about — cyber-insurance. Queries include exactly what the policies cover and cost, how insurers quantify losses, and whether the policies are necessary.
"There is lots of chatter," says Anne Marie Davine, managing director of Marsh's U.S. law firm practice. "Rarely do we have a meeting with clients or potential clients where this topic doesn't come up." Marsh's website defines cyber risk as "a wide range of internet and network exposures" that include theft or manipulation of sensitive or private information (e.g., financial or health records); viruses that can destroy data, damage hardware, cripple systems; and computer fraud.
Cyber-insurance has been around for a decade, but recent trends are prompting a closer look. The number of insurers has increased, and providers are starting to offer cyber insurance specifically tailored for law firms. Davine estimates that there are about a dozen standalone policies from a range of insurers, including AXIS Insurance, Monitor Liability Managers, and CNA. Others offer coverage as part of legal professional errors and omissions coverage, such as Travelers' "network and information security offense" policies for small to mid-sized law firms. (Travelers offers separate CyberRisk coverage for large organizations, but it's not legal industry-specific.)
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Source: law.com
By: Tam Harbert
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