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:
First Party Cyber Event cover
- Access to Chubb’s Incident Response Team via a 24/7 telephone hotline, a mobile application or an online platform in the event of an actual or suspected breach.
- Assistance from specialist third party vendors including public relations and crisis communication consultants, forensic IT and security experts, and law firms.
- Coverage for loss of net profit due to business interruption that results from network or system downtime.
- Cover for fines and penalties resulting from a regulatory investigation or breach of mandatory notification legislation (where insurable by law).
- An optional extension for social engineering fraud cover.
Third Party Cyber Event cover
- Compensation and defence costs which arise from claims brought by impacted customers or employees for privacy breach.
- Third party privacy and breach management costs. These commonly include expenses to comply with notification provisions in privacy legislation, and costs associated with credit monitoring and call centre services.
Key Features of the Marsh arranged Cyber offering underwritten by Chubb
- A bespoke policy designed specifically for legal practitioners.
- A Difference in Conditions endorsement.
- Inclusion of cover for cyber crime.
- An optional extension to extend cover for claims arising from social engineering (CEO) fraud.
Social Engineering Fraud
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.
Disclaimer: Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arrange the insurance which is underwritten by Chubb Insurance Australia Ltd (ABN 23 001 642 020, AFSL 239687) (Chubb). Marsh makes no representation or warranty concerning the financial condition or solvency of Chubb. This website contains general information and a general overview of the policy terms only. It is not a complete description of all the policy’s terms, conditions and exclusions which determine coverage for a claim. This brochure does not take into account your individual objectives, financial situation or needs and may not suit your personal or commercial circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings available from Marsh on request. The policy is designed for Legal Practitioner firms operating in Victoria. Please note that we do not approach the insurance market for alternative products outside of this facility. Any statements concerning legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as legal advice, for which you should consult your own professional advisors. LPCA 19/013.