Cybersecurity Awareness Month: Improve Risk Management and Reduce Financial Impact

Stricter Requirements Imposed on Cyber Insurance Policyholders to Maintain Coverage

According to JD Supra, 1.73 billion personal data records were breached in the United States last year.  When lawyers upgrade their cybersecurity defenses and become more resilient against cyber threats, they reduce the frequency and severity of claims caused by sophisticated threats like ransomware.

All lawyers, regardless of their practice areas, have an ethical duty to strengthen their overall cybersecurity posture to mitigate risks more effectively. But having cyber insurance coverage alone does not keep cybercriminals from attacking your personal and firm data.

• Be sure to update and improve your firm’s IT security policies and cybersecurity practices – PLAN, TRAIN, and MONITOR;

• Be sure your firm has comprehensive cyber insurance coverage; and

• Most importantly, be aware that most insurers now require businesses to implement multi-factor authentication (MFA) for all data access points, including user and administrative accounts, as well as remote and privileged access.

Doing these three things can reduce the risk of unauthorized access and keep insurance premiums low. If you don’t, you may be faced with coverage denials, reduced coverage, or higher premiums.  

Being continuously surrounded by cyber threats can be spooky for lawyers. We encourage you to stay vigilant and stay informed.

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About the Author

Nancy Cooper, Underwriting Assistant

Attorneys Insurance Mutual of the South

Written by Nancy Cooper, AIM’s underwriting assistant to Ben Parks, Vice President – Underwriting. She enjoys talking with our insureds and helping them with their policy questions.