The American Bar Association has expanded its insurance offerings to include cyber insurance, adding a well-timed line of insurance to its coverage that already includes life, disability, dental, vision and travel insurance for law firms.
The innovative insurance is underwritten by Chubb Limited and includes cyber coverage for a firm’s own expenses, such as network extortion, income loss and forensics, associated with a cyber-incident as well as for liability protection and defense costs. The coverage can be tailored to meet a law firm’s unique needs and also includes Chubb’s loss mitigation services both before an incident and following an incident.
In recent years, the legal profession has become a popular target for hackers. Despite vigilance and increased awareness by law firms and individual lawyers, cyber-related risks have escalated based on the sensitivity and nefarious uses of that data. Last year, for example, the Manhattan U.S. attorney’s office unsealed indictments against three Chinese men who are accused of using stolen law firm employee credentials to access troves of internal emails at two law firms. The men, according to prosecutors, used details they obtained from partners’ emails about pending deals to make more than $4 million in illegal stock trades.
“Cyber insurance coverage is a valuable and practical member benefit for lawyers offered through the ABA Insurance portfolio,” ABA President Linda A. Klein said. “As the number of cyber breaches increases everywhere and throughout all industries, it is critical that lawyers and law firms that rely on vast amounts of electronic data are protected. As the legal profession evolves, the ABA remains at the forefront in providing attorneys the tools they need to thrive.”
ABA Insurance is available through USI Affinity, a national leader in insurance member benefits that has teamed with the ABA to create a new insurance program specially designed for America’s lawyers. These insurance benefits are available only to ABA members and their families.