Lockton is pleased to announce the launch of a new Travelers Insurance Company cyber liability insurance policy for UK based law firms. An "A" rated insurer with a long and established track record of providing insurance solutions to UK law firms.

Cyber criminals have specifically targeted law firms in recent years due to the nature of extremely sensitive data and vast sums of money they can hold. This has made them a prime target. Examples of cyber-attacks include theft of data, ransom demands, denial of service and theft of client and /or office money through sophisticated phishing and social media attacks. Should a firm suffer such an attack the cost in partners time and subsequent financial losses can have a devasting impact to the firms finances, as well as the fall out of any reputational damage. The National Cyber Centre has recently published a report highlighting the evolving threats to law firms - https://www.ncsc.gov.uk/report/cyber-threat-report-uk-legal-sector.

Arranging a cyber liability insurance policy gives firms peace of mind knowing that in the event of a cyber-attack they can place the management of the incident to specialists who can respond quickly and ease the stress and financial burden following a cyber incident. In recent years professional indemnity insurers have been asking the question "Do you hold cyber liability insurance?" and see it as a positive risk management tool within a firm.

Examples of cover on The Travelers Cyber Risk policy are:

  • Broad coverage for claims arising from a privacy breach or the failure to provide notification of a privacy breach.
  • Cover for regulatory fines and penalties where insurable.
  • Defence cost and consumer redress funds cover arising from a regulatory proceeding.
  • Cover for costs associated with responding to privacy breaches, including legal advice, computer forensics, preparing and sending notifications to individuals' whose privacy was breached, credit monitoring and setting up call centres.
  • Business interruption coverage for loss of income and expenses to restore operations because of a computer system disruption caused by a virus or unauthorised computer attack.
  • Damage to computer system cause directly from a computer breach.
  • Business interruption loss caused by a computer system disruption to an outsource provider's or IT provider's computer systems.
  • Payment card contract penalties and chargebacks arising from a privacy breach.
  • Crime losses arising as a result of a computer fraud, funds transfer fraud and telecommunication fraud.
  • Payment of reward expenses in connection to covered fraud where the information leads directly to conviction.
  • Reimbursement of a ransom payment and cyber extortion expenses resulting from a cyber-extortion threat by an individual or organisation expressing an intention to cause harm to an insured or refusing to bring to an end any act which would harm the insured.

If you would like us to talk through the Travelers Cyber Risk policy for law firms, please contact your Lockton Account Executive.