Allegations of errors & omissions and breach of fiduciaryduty for lawyers' professional risk are on the rise–not just fromtraditional risks, but a raft of new exposures arising from the useof technology.

Today's attorneys face new exposures from the use of technologyand media, such as their websites, publishing and sale of articlesand the protection of data in their network systems. That's whytoday it's more important than ever for agents and brokers whospecialize in this niche to consider all of the angles whenevaluating policy coverage for their clients in the practice oflaw.

Related: Read another feature by Jennifer Dumont, “Usingthe wholesaler connection to deliver EPL coverage.”

Networking technology can play an important and dynamic role tothe success of the law firm, but along with the new technologycomes information on a new level to safeguard. To keep pace withthe ever-changing technology market, today's law firms need askilled insurance agent at their sides to provide the coverage theyneed for computer virus, and claims for the failure to controlaccess to their systems and preventing unauthorized access or useof data containing confidential information of others.

Sidebar: Data breach: 5-point inspection checklist

According to Randal P. Mrozowicz, executive vice president atMonitor Liability Managers LLC, today's era of social media, databreaches and crisis situations requires agents to help law firmsrecognize these new exposures and offer professional liabilityinsurance that covers these new risks as part of a comprehensivepolicy. “Now more than ever, law firms of all sizes need theprotection that a broad LPL policy can offer,” he said.

To illustrate some of the privacy issues insureds face, considerthese examples of recent claims concerning with lawyers'professional liability:

1. A prominent female executive in a metropolitan city filed apersonal injury lawsuit against her attorney for invasion ofprivacy and emotional distress. She alleged that the attorney, apartner at a distinguished law firm, wrongfully filed a sexualharassment lawsuit listing her full name instead of using an alias.She stated that her privacy had been invaded because her well-knownname was released to the public and she later suffered publichumiliation and scrutiny. Defense costs exceeded $75,000.
2. A state administrator filed suit against an assistant publicdefender alleging improper disclosure of confidential information.The attorney allegedly discussed his clients' cases, often usingextraordinarily personal information, such as their names and jailidentification numbers, on his personal blog. The stateadministrator stated that the attorney's comments were an obviousviolation of client confidentiality. The attorney is currentlyfacing censure by the state bar association.

In addressing some of these media and privacy perils, determineif there is coverage in the policy you are providing your law firmclient and if not, how can you get them the coverage they need.

Make sure the policy includes:

• Publishing liability coverage for opinions/editorials publisheddirectly related to the practice of law
• Network and information security offenses–covering claims frominfliction of a computer virus, failure to control access to theinsured's computer or network, including confidential informationof others
• Expense reimbursement coverage for a crisis event–usually asub-limit outside the limits for reimbursement of expenses after acrisis event that will help repair any damage to the insured'sreputation stemming from the event that occurred. Accomplished byconsultation by a public relations firm.

Include these preferred coverage enhancements in yourchecklist:

• Pre-claim assistancecovers expenses associated with theevaluation and mitigation of potential claims; payment is notsubject to a deductible and does not reduce the applicableprofessional liability coverage limits
• Innocent insured coverage–when several insureds share a policyconduct or knowledge of one insured does not impute the otherinsureds from coverage and covers the innocent insureds
• Deductible credit for mediation claim settlement
• Worldwide claims coverage
• Any gaps in coverage where bodily injury or property damage isexcluded
• Reimbursement coverage for legal expenses or regulatoryproceedings
• Broad definition of professional services–includes pro-bonoservices and in the following capacities: lawyer, law clerk,paralegal, legal support staff, arbitrator or mediator, lobbyist,notary public, title agent and in connection with the practice oflaw; administrator, conservator, receiver, executor, guardian,trustee.

Also, note in today's market that you are able to purchasecoverage for information security and privacy liability on astand-alone basis should your policy only provide a sub limit, nocoverage or your client wishes to keep these exposures separatelyinsured. Many times a stand-alone policy can be more comprehensivein coverage. For instance, Beazley Insurance Co.'s informationsecurity and privacy product provides privacy liability,third-party coverage in response to unauthorized access, electronicmedia liability coverage and first-party coverage for losses fromnetwork security breaches, with limits of up to $20 million.

“In preparing proposals for law firms, it is essential that theexposures be evaluated and updated at least annually,” said PeterR. Cohen, vice president of Capacity Coverage Corp. Agency in Mahwah, N.J.“We have found that as exposures evolve, having a wholesaler thatspecializes in professional lines who can provide us with as manycoverage options as possible is essential to addressing the needsof our clients. As a retailer, it isn't always possible to exploreevery potential carrier alternative.”

If you don't know all the ins and outs of placing lawyers'professional policies, team up with a wholesaler who can guide youand provide carrier access to get the job done correctly. Awholesaler with a dedicated team of professional lines experts canwalk you through to the best fit for your client and will knowwhich carrier is providing the best pricing and coverage withcurrent information.

Related: Read another feature by Jennifer Dumont, “Usingthe wholesaler connection to deliver EPL coverage.”

Sidebar:Data breach: 5-point inspection checklist