Yesterday, the American Bar Association released a cyber insurance guideline document for lawyers. “Jeffrey Lolley, chief information security officer at Hogan Lovells US LLP in Washington, describes the publication as a ‘must read for those firms that want a solid understanding of what to look for in terms of coverage terms, price, limits and deductibles.’ “
Lawyers occupy a unique position in the landscape of cyber insurance; firms often hold a variety of sensitive client information and require strong cybersecurity of their own, while also being in the position to advise clients on cybersecurity and cyber insurance, and influence policy and litigation around cyber insurance through their work. Cyber insurance can protect law firms’ own liability, and allow clients to recover financially if their information is breached through a breach of a law firm. (As we saw with the Panama Papers case, this is a real concern).
Lawyers’ professional liability insurance can cover some of the harms associated with data breaches but not all; additionally, some clients may contractually require that their lawyers carry cyber insurance, or require a third-party review. Cyber insurance can also cover claims not covered by LPL, including claims by third-party vendors, employers, and data not associated with clients.
On Monday, we’ll hear from a number of lawyers for their perspectives on cyber insurance; watch our Medium channel for a recap of the conference as well as a review of the ABA’s guideline document. See you on campus Monday for our Cyber Insurance conference!
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