Firms will need to consider purchasing separate cyber attack insurance this year, the Law Society has warned
The reminder follows the Solicitors Regulation Authority’s decision last year to explicitly exclude first party losses resulting from cyber attacks from professional indemnity insurance.
I Stephanie Boyce, president of the Law Society, which last week issued guidance on the issue, said: ‘It’s not a strict regulatory requirement for solicitors to purchase cyber insurance―but it’s a sensible precaution.
‘Failure to purchase such cover may conflict with solicitors’ regulatory responsibility to have “adequate and appropriate insurance”, or leave them exposed to regulatory action for data breaches.’
Boyce said cyber insurance policies ‘vary in scope and coverage’ and it was important that firms understand the options. The Law Society guidance, Cyber insurance for law firms, can be viewed here.
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