The development of cyber insurance in Europe began in 1995 with the adoption of the EU Data Protection Directive when data protection was established as a right of EU citizens. In the mid-2000, increased dependence on information technology and major hacker scandals led to increased demand for cyber insurance. In 2013, the EU announced the EU Cyber Security Directive, which sets out minimum business security measures. 2013/2014 insurance companies make offers in a wider market, and in London, there are 25-30 markets for this insurance. In 2015, the implementation of the data protection legislation reform was expected, but this was postponed for later. The cyber insurance market is estimated to generate more than € 700 million in premiums.
By passing stricter laws on personal data protection, the cost of resolving cyber intrusions is increased, through the cost of notifying the authorities within 72 hours, clients, relationship costs with the public and legal costs. In Europe, the European Global Data Protection Regulation is expected to enter into force in May 2018, a provision adopted in 2016. If a company fails to comply with the provisions of this regulation, it can be penalized with 2% to 4% of their global revenue, depending on the type of activities and with the application of monetary restrictions (maximum of EUR 20 million). The enactment of this regulation could bring further accelerated growth of cyber insurance.
Law Firms Under Attack
The UK legal sector faced a serious cybersecurity concern in 2022. True enough because a recent government report estimated around sixty percent (60%) of law firms in the UK have suffered from a form of cyberattack or data breach in the past twelve (12) months of their operation. With the challenges brought about by the pandemic and law firms’ digital platforms, cybercriminals are easily attracted to steal a huge amount of money and confidential information that they can use to their advantage from this industry.
Sad to say, quite a lot of solicitors deny the fact that they are favorite targets of hackers. Moreover, around two thirds (2 out of 3) of law firms in the UK do not have a cyber incident response plan to neutralize cyberattacks.
Due to the effects of the pandemic, seventy percent (70%) of lawyers are working online to protect themselves and adhere most to most of the health protocols in the U.K. These factors and situations make them easy prey for the cybercriminal beasts. Furthermore, a problem may also arise from an unintentional opening of documents resulting in business email compromise.
Know your Enemy and Own Weaknesses
The “Art of Warfare”, as most strategists call it, requires a vivid knowledge of the following information, namely: (1) Who or what is attacking you? (2) What are the methods being used in the attacks? (3) Are my weak points repairable or curable? Lastly, know how you can defend, protect and reinforce your army or in this case your cyber defenses and data security.
With the revolution of internet, technology comes the advancement of cyber criminality, and it is a fact in every aspect. Every hacker is innovating and just waiting for the perfect timing for every attack. Various methods are being used from simple emails to drastic ransomware or what we call, “professional criminals”. However, there are instances that data breaches are being committed due to carelessness and negligence. These, too, are weak points that need to be addressed.
Winning the Battle
Cyber insurance is not just a form of protection against potential IT and Cyber risks. It is part of the business strategy and business culture of any serious organization. Not having adequate protection against more and more frequent and certain incidents like data leaks or Cyber extortion means that you do not take your business seriously. Or maybe you think you are one of those lucky people who will be bypassed by such incidents? Cyber insurance, in short, is financial coverage in cases of Cyber incidents. In cases where your company suffers damage, Cyber Insurance serves to cover all material costs incurred the moment you are exposed to an incident.
An incident usually affects not only your company but also your business connections. Your company’s client has the right to hold you accountable in the event of a Cyber incident, and if you are not insured, you will pay the accompanying court, administrative and other costs. For most small or medium-sized businesses, even the smallest cost of a Cyber incident can bring future business into question. Not to mention the secondary damage: reputational damage, dissatisfied and damaged clients, laid-off employees, vulnerable families, etc.
Fortunately, we have cyber insurance for solicitors here in the UK. Learn more on cyberinsurance.co.uk. These cyber liability insurances can create a data security platform to address the weak points of a law firm. Such cyber insurance coverage generally protects you starting from the business aspects of it to the more confidential nature or even family nature of your precious data and information.
Cyber liability insurance will give us the peace of mind we need as we continue to face the challenges of the pandemic, human errors, and cybercriminal attacks. It will assure us that everything will be in control and order before, during, and even after a cyber attack or data breach. It feels so secure knowing you are backed up by experts and professionals in times of crisis.
Further Security and Peace of Mind
Cyber-attacks and human errors are inevitable. But there are solutions for every situation in this industry especially in the protection of data confidentiality on law firms and lawyers. Cyber insurance coverage can reimburse any loss in profits should your firm need to stop operating temporarily due to a data breach. Immediately, experts and cyber professionals are within reach to assist you in managing the crisis hands-on.
Not only that one may suffer business interruption but also legal costs or fines may be imposed by a government agency or regulatory commission. But having cyber insurance will protect your firm from further loss. Furthermore, experts will be deployed to recover any data loss and reinforce your data security so it will no longer be vulnerable to cyber-attacks or mistakes.
These are only some of the general coverage of cyber insurance and every company offering such may vary by adding some more services and data protection. In conclusion, all law firms must secure a policy of this type since all of us rely on data management and security.
Cyberattacks may evolve and come anytime if we are unprepared. So, it is better to be sure or I should say secure than be sorry later on. Interestingly, having cyber insurance is not costly and surely a very practical move nowadays.