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By Edita Abrudeanu, Founder & Principal Broker — Professional Insurance Experts, LLC
Law Firms and Cyber Insurance: The One Coverage Most Attorneys Still Ignore
Because client trust can vanish with one click
Picture this:
Your firm just wrapped a big case.
A week later, your paralegal opens what looks like a court notice email — and clicks the attachment.
Within minutes, your files are encrypted. Client data stolen. Ransom demanded.
Phones ringing. Clients panicking.
You’re not being sued (yet).
But you’re about to be.
01. Why Law Firms Are Prime Targets
Law firms are treasure chests for cybercriminals — personal data, financial records, trade secrets, even privileged emails.
And unlike large corporations, most firms have little to no IT infrastructure.
They’re small enough to hack easily but big enough to pay.
Hackers know it. That’s why ransomware attacks on professional service firms have skyrocketed.
02. The Big Misconception
Most attorneys assume their malpractice policy covers cyber losses.
It doesn’t.
Malpractice insurance is for negligence in legal work — not for:
- Ransomware attacks
- Phishing or wire fraud
- Data breaches
- Regulatory fines
- Client notification and recovery costs
Cyber insurance fills that gap.
03. What Good Cyber Coverage Should Include
When written correctly, it can cover:
- Ransom payments and data recovery
- Forensic investigation to find the breach source
- Client notification and credit monitoring costs
- Regulatory defense and privacy violation penalties
- Business interruption if your system is down
Some policies even include 24/7 breach response teams — legal, PR, and IT experts who jump in before damage multiplies.
04. The Cost vs. the Cost of Ignoring It
Most law firms can get solid cyber coverage for less than $500–$800 per year.
That’s less than the hourly rate of one attorney.
Meanwhile, the average cost of a data breach in a small firm? Over $200,000.
Without cyber insurance, that’s coming straight out of your operating account.
Final Takeaway
Cyber attacks aren’t just an IT problem — they’re a liability problem.
If client data leaks, it’s your reputation, your ethics, and your finances on the line.
The same way you protect your clients with diligence, protect your firm with coverage that’s built for today’s risks.
Because one click shouldn’t undo a lifetime of trust.
Ready to Make Sure Your Coverage
Actually Protects You?
Let’s review your policy and uncover any gaps before they become problems.