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Cyberinsurance Considerations for Law Firms

Law firms spend a lot of time and effort to protect their clients' interests, but often overlook routine protection and security of clients' (and their own) data. While not a cure-all for data security risks, one important component to consider in putting together a comprehensive data security program is cyber insurance, as most general liability policies and professional liability policies now expressly exclude coverage for data breach claims.

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As a profession, lawyers are notoriously slow in staying abreast of new technology. While bar associations and state regulatory boards have emphasized for years that attorneys have an ethical duty to stay abreast of current and developing technology, many attorneys and firms fail to keep up with the ever-increasing pace of technological change. Attorneys may be unaware of the potential risks involved in the use of multiple devices used to perform work — each device is subject to being lost, stolen or hacked. These risks increase if a firm has failed to encrypt personal or other sensitive information.

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