There are many cyber risks existing and emerging and only some of them will be covered by LPLC’s professional indemnity policy. LPLC is aware that many firms have been looking for cyber insurance cover to supplement their other insurances.
Cyber-crime is on the rise in Australia as criminals shift their attention to opportunities in the online world.
LPLC has observed that cyber-attacks cause significant disruption and losses to a law practice – not only the costs of investigation, IT remediation and getting a business back up and running, but also the losses of income and expenses incurred by interruption to a firm’s day to day business.
The LPLC Professional Indemnity Policy of Insurance provides cover to law practices for civil liability in connection with a firm’s legal practice and associated defence costs. Claims to which the LPLC policy responds usually involve a client alleging loss as a result of acts of negligence and/or breach of duty. In other words, claims brought by third parties against legal practitioners. Claims by third parties brought against practitioners for damages relating to cyber-crime also usually fall within the ambit of the LPLC Policy. The LPLC policy however does not cover the firm’s own business losses (first party losses), for instance, the costs of interruption to the firm’s business, retrieval of electronic data, the IT costs and other costs of remediating a cyber-security breach and regulatory fines and penalties.
There are many cyber risks existing and emerging and only some of them will be covered by LPLC’s professional indemnity policy. The LPLC are aware that many firms have been looking for cyber insurance cover to supplement their other insurances.
The LPLC have worked with Marsh who have arranged a commercial cyber insurance policy, underwritten by Chubb, that will sit alongside LPLC’s professional liability coverage for firms. It is an optional cover which firms can choose to purchase.
Visit the Marsh website for more information about the policy. The FAQs on this page answers questions about cyber insurance and how the Marsh policy intersects with the LPLC Professional Indemnity policy.
Marsh/Chubb held a webinar on 4 April 2019 to provide more information and answer questions about the cyber insurance policy.