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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.

The law firm may need to hire a forensic IT investigator to determine what went wrong—and then will incur costs related to notifying everyone whose information has been compromised. And if a hacking event causes the law firm to shut down for any period of time, those business-interruption losses would likely not be covered under a standard LPL policy.

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