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Is Your Law Firm Ready for a
Data Breach?
Much like an unexpected verdict, a data breach is a sudden event which
occurs when personally identifiable information is compromised. Hackers, a
faulty transaction, malfunctioning technology, simple human error and lost or
improperly disposed data can be the culprit.
The effects of data breaches on your law firm and your clients could be paralyzing. Not only will you be responsible for
credit monitoring for your clients, but analysis into how the data breach occurred and steps to avoid another
occurrence can be costly and time consuming.
View statistics, coverage and the latest claims that law firms have
experienced over the last year on the following pages and give us a call today:
Ponemon Institute studies data breaches. In 2013 this annual study estimated an average post-breach cost of $188 per
record. Although this includes $124 in lost business cost, the remaining $64 of actual remediation cost per record can add
up quickly.
Data breaches occur every day. Hacking incidents are the most recognizable and expensive cause of data loss, yet they
are not the most common. Three out of four incidents result from human error!
• 40% of the data breach cases are from people making mistakes, such as losing laptops and flash drives.
• 36% are system glitches, such as software updates, which inadvertently expose sensitive private files.
• 24% are malicious and criminal attacks.
Here are just a few examples of how a breach of information can
occur and how much remediation would cost without proper coverage:
Easy Application & Quality Coverage
Example Breach
A law firm customers’ case file containing HIPAA information was stolen
from hacked server.
Number of records: 700
Estimated costs at $64 per record = $44,800
Example Breach
A law office dumped sensitive client information into garbage containers behind
its facility. The records included Social Security numbers, credit and debit card
account numbers, names, addresses and telephone numbers.
Number of records: 4,000
Estimated costs at $64 per record = $256,000
Example Breach
A laptop with employee information stolen out of a parked car.
Number of records: 4,300
Estimated costs at $64 per record = $275,200
Important statistics/facts your
law firm should know about
• According to Visa, 85% of data breaches occur at the small business level
• Shred-it, an information security company, found 41% of small business owners have no secure data protocols
• Advisen reported 97% of the largest companies said they believe cyber risks pose at least a moderate danger
• Advisen also reported 91% of small companies said they believe the risks pose at least a moderate danger
• Ponemon Institute reported the total cost per company from a data breach was more than $6.75 million
• The HITECH Act and FTC requires you to notify your clients when the security of their health information has been breached; Health and Human Services requires HIPAA-covered entities, such as hospitals, doctors’ offices, and health insurance plans, to notify individuals of a security breach.
Are you prepared to handle all of your clients in addition to your daily
operations? Give us a call today:
A data breach can crush the most
protected system like a poor verdict
Cyber Liability Coverage for Lawyers
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Limits available: $500,000 and $1,000,000
Retentions range: $5,000 to $25,000; are scaled based on revenues
Full limit for breach notification costs
Full limit for computer forensics
Duty to Defend policy
Coverage for breach of contract claims, including those under a payment card processing or service provider agreement
Medical or healthcare fields are covered on our special healthcare privacy form, with wording taken directly from
HIPAA HITECH to help ensure coverage triggers properly
• Coverage for regulatory actions, including investigations by the FTC or state attorneys general, as well as coverage for
civil penalties (where allowed), and compensatory awards such as consumer redress funds
• $25,000 of PCI Fines coverage included at no additional premium
• Ability to add complementary coverages such as:
• Multimedia Liability
• Hacker Damage
• Cyber Business Interruption
Contact us today for a competitive quote: