Growing exposures in the area of cyber liability are creating new pockets of insurance needs within the lawyers’ professional-liability (LPL) market.
A security breach that results in a client’s data being stolen and used in a damaging fashion can lead to third-party liability claims. And beyond that exposure, the theft of information through a hack brings with it other potentially expensive losses.
“You think you have a handle on how law firms are going to be sued by their clients, and sometimes you find out there are other ways in which a law firm can be sued,” says Reed. “Information is moving just so much more quickly today.”
Bad Economy, Big Claims