Every company has a reliance on technology, regardless of their size or industry. This creates an exposure to cyber risk that can emanate from multiple sources, both internal and external to a company’s immediate operating environment. This risk is not going away either. In today’s interconnected world where we increasingly rely on technology, cyber risk will always be an important consideration when operating a company.
Today, cyber-attacks have moved beyond simple data breaches to sophisticated schemes designed to disrupt businesses and supply chains, costing some organisations billions of dollars globally. In line with the growing number of cyber attacks against businesses, costs associated with cyber crime are also on the rise. These attacks have the ability to cripple an organisation by disrupting IT systems and damaging the company’s brand.
Law firms are desirable targets to external threat actors due to the extensive amount of valuable and confidential data that is regularly stored on your systems. In addition to this, firms also handle large amounts of settlement funds on behalf of clients, representing a lucrative target to potential hackers.
Whilst a Cyber insurance policy should not act as the primary solution for managing a company’s exposure to cyber-attacks or data breaches, mitigating cyber risk through insurance can play an important role in the overall risk management approach of a business. Cyber insurance provides both first party and third party coverage, as well as access to specialist vendors to provide immediate assistance in containing an incident and reducing any resulting losses.
Recognising the increasing cyber risk faced by law firms, Marsh has worked with Chubb Australia to develop a Cyber insurance facility specifically for Victorian law firms that are currently insured with Legal Practitioners Liability Committee (LPLC). The value proposition developed by Marsh centres on providing our LPLC member firms with coverage that is relevant and specific to your business risks. Under this arrangement a bespoke wording has been drafted, and key coverage enhancements have been negotiated specifically for the benefit of LPLC member firms.
Covering the operations of a business, its reputation and client base is critical. The Marsh cyber insurance solution for law firms provides:
Social engineering fraud is widespread, increasing at an alarming rate as fraudsters remain persistent and relentless in the pursuit of their crimes. For organisations that fall victim to an attack, the financial consequences can be devastating.
Social engineering is the art of manipulating human behaviour to use the target to unintentionally reveal sensitive information or perform actions that compromise the security of networks to obtain unauthorised access to a system for financial gain.
Under this arrangement for Victorian Law Firms, Marsh has negotiated an optional extension to include Social Engineering Cover as follows:
Sub-limit: $50,000 any one claim and in the aggregate
Retention: $1,000 each and every claim
Additional Premium: 20% of the base premium, plus charges
Note: coverage is subject to completion, review and acceptance by Chubb of the Lawyers Social Engineering Fraud Questionnaire
Please refer to the Cyber Liability Insurance Application Form for limit and pricing details.