Reasons Why Law Firms Need Cybersecurity Protection
By: Mack Jackson Jr.
Cybersecurity is a critical issue that affects businesses of all sizes, but law firms are particularly vulnerable. The sensitive and confidential information that law firms handle daily makes them a prime target for cyberattacks. From client data to trade secrets, a law firm’s data is worth a great deal to cybercriminals. Law firms must implement comprehensive cyber insurance to protect themselves and their clients.
The Risks Facing Law Firms
Cyberattacks on legal service providers, like law firms, are becoming more and more likely due to data breaches. Cybercriminals pose many risks to the legal system, from phishing scams to malware attacks. These attacks can lead to the theft of confidential information, financial losses for the company, and damage to the company’s reputation. A data breach can also result in expensive litigation, investigations, and fines from regulatory agencies.
As a result of the abundance of sensitive information intrinsic to the legal sector, law firms are frequently the target of cybercriminals. There is a broad spectrum of information that could be compromised depending on the specialty of the companies. These are some risks that law firms face:
• Personal Identifiable Information (PII) of employees, vendors, and customers
• Sensitive contract documents
• Private corporate data
• Registries of criminal activities
• Criminal activity records
Cybercriminals threaten to release confidential information if a law firm does not pay the ransom. This kind of attack could harm the law firm’s reputation. Therefore, even if the legal firm had sufficient controls to allow them to recover from the incident, they might still be required to pay. In many cases, the cost of a breach is in the millions of dollars. This amount can be considered a hit that only the most significant companies can weather. However, the costs of a cyberattack could put a small or medium-sized business out of business. A successful cyberattack against a company can have more negative effects than just the direct costs. These include the following:
• Disruption of regular operations
• Financial losses
• Legal entanglements
• Damage to one’s reputation, which can have repercussions for one’s business in the future
The good news is that all these losses can be compensated for or reduced through a cyber insurance policy.
The Importance of Cyber Insurance for Law Firms
Cyber insurance can give law firms peace of mind, knowing they are protected against a cyberattack’s financial and reputational damages. With cyber insurance in place, law firms can rest assured that they will have the financial resources to recover from a data breach and mitigate its impact on their business.
Ethical Responsibility
The ethical responsibility of individual attorneys and business leaders is to safeguard client information. Many cyberattacks could be stopped if attorneys and businesses knew about workplace risks, types of cyberattacks, and ways to avoid them. It is unreasonable to expect corporate counsel and outside lawyers to be technology experts (O’Connor, A. E., 2022). Instead, individual attorneys and law firm administrators must recognize the nature and scope of the threat and ensure that preventative measures are taken with the support of a security expert. The American Bar Association’s (“ABA’s”) Model Rules of Professional Conduct (“Model Rules”) and its Official Comments talk about protecting client information (Veasey, E.N., 2019). The Model Rules have been changed to clarify that lawyers must be aware of the pros and cons of the technology they use and take reasonable steps to protect information about their clients from unauthorized access.
As with any business contract, insurance policies may contain coverage-voiding clauses, such as “an act of war,” which can leave organizations vulnerable to cyber threats. This is why it is crucial for organizations to seek out insurance professionals with an in-depth understanding of cyber coverage and to thoroughly analyze their legal team before purchasing an insurance policy (Dobson & Harris, 2020).
Due to the variety of coverage and exclusions, organizations should examine their coverage conditions before purchasing an insurance policy. This process includes reviewing the policy’s definition of a cyberattack, the covered data types, and the specific exclusions that apply (Dobson & Harris, 2020). For example, some policies may not cover attacks that originate from particular countries or may only cover losses that result from a data breach.
The Benefits of Cyber Insurance
By partnering with an experienced cyber insurance professional, organizations can gain peace of mind knowing that they are protected against a cyberattack’s financial and reputational consequences. Cyber insurance can also help organizations manage risk, reduce exposure to cyber threats, and improve their overall cyber security posture.
Cyber insurance policies can provide organizations access to various services and resources, including 24/7 incident response and breach management, legal and technical expertise, and a network of cybersecurity experts. A policy can be invaluable in a cyberattack, as it can help organizations respond quickly and effectively, minimizing the damage and restoring operations as soon as possible.
Cyber threats are a growing concern for businesses of all sizes, and traditional insurance policies may not provide adequate protection against these complex and ever-evolving risks. Organizations should seek out insurance professionals with an in-depth understanding of cyber coverage and thoroughly analyze their legal team before purchasing an insurance policy. By working with an experienced cyber insurance professional, organizations can gain peace of mind and be protected against a cyberattack’s financial and reputational consequences.
About the Autor
Mack Jackson Jr. is the CEO of Vanderson Cyber Group. In the age of global cyber threats, Vanderson Cyber Group helps businesses protect themselves from cyberattacks by teaching them cybersecurity awareness. Vanderson Cyber Group uses state-of-the-art practices in security policy development and comprehensive employee training. One of the essential services is phishing simulation and compliance training, which keep employees up-to-date on the threat landscape. Vanderson Cyber Group also provides resources for cyber insurance, managed services, and legal representation. For more information: http://www.vandersoncybergroup.com
References
Dobson, M., & Harris, J. P. (2020). Preparing for Cyberattacks: BNH. Business NH Magazine, 37(7), 28.
OConnor, A. E. (2022). Ten considerations for the remote practice of law. Wealth Management.
Veasey, E. N. (2019). Protection of client confidential information from cyberattacks is a compelling business and ethical priority for inside and outside corporate counsel. The Business Lawyer, 75(1), 1495–1518.
