Law firms are prime targets for cyberattacks. With highly sensitive data, valuable client information, and often less-than-cutting-edge cybersecurity infrastructure, legal practices are seen as soft targets by hackers. And while most firms now carry some form of cyber liability insurance, the hard truth is that standard coverage often isn’t enough.
For managing partners and firm decision-makers, understanding your cyber risk—and the adequacy of your coverage—is no longer optional. The stakes are too high, and the reputational damage can be long-lasting.
Why Law Firms Are High-Value Targets
Law firms hold a treasure trove of data that threat actors want. Examples include:
- Corporate deal data (M&A, private equity, IP filings)
- Litigation strategy documents
- Banking and trust account details
- Privileged communications
- Client personally identifiable information (PII)
In 2023, several high-profile firms experienced ransomware attacks that shut down operations and led to potential privilege breaches. These incidents aren’t anomalies—they’re signs of a rising trend. Even small firms aren’t immune, especially if they’re viewed as entry points into larger networks.
What Standard Cyber Policies Often Miss
Many cyber policies marketed to professional services firms were designed with broader industries in mind—and may not reflect the unique risks faced by law firms. Common gaps in standard policies include:
- Weak or missing coverage for privilege-related breaches. Not all policies cover the legal and reputational fallout of exposing privileged communications.
- Insufficient business interruption protection. If your case files are locked by ransomware, how quickly can your firm resume operations—and will your policy fully fund the downtime?
- Lack of coverage for third-party liability. If a breach at your firm compromises a client’s data, they may sue you. Not all policies respond the same way.
- No coverage for regulatory actions. Law firms may face bar association discipline or regulatory inquiries following a breach.
- Low sublimits for incident response. Forensics, PR consultants, notification costs, and legal counsel add up fast—and standard sublimits often fall short.
What Comprehensive Cyber Coverage Should Include
A cyber policy designed for law firms should address both first-party and third-party exposures, with key coverages such as:
- Ransomware and extortion response costs
- Network business interruption and data restoration
- Regulatory defense and fines
- Notification and credit monitoring for affected parties
- Media liability (in case confidential data is leaked)
- Breach of attorney-client privilege consequences
Also critical: pre-breach services, such as security assessments and employee training programs. Many carriers now offer these proactively as part of the policy—don’t overlook them.
Managing Cyber Risk Is More Than Just Buying Insurance
While cyber insurance is essential, it’s just one piece of the puzzle. Decision-makers should also ensure their firms have:
- Updated incident response plans with roles clearly defined.
- Data encryption standards, especially for remote work setups.
- Multi-factor authentication (MFA) on all remote logins.
- Regular penetration testing and vulnerability scanning.
- Employee phishing training, since human error remains the #1 cause of breaches.
Firms should also revisit how they manage third-party vendors—particularly IT providers and software platforms. A security gap with a vendor could lead right back to your firm.
Final Thoughts for Firm Leaders
Cyber risk is one of the most serious threats facing law firms today—and yet many continue to rely on generic cyber insurance that doesn’t address the real exposures. With regulators, clients, and the public all scrutinizing breach responses, you can’t afford to be underprepared.
Does your cyber policy actually protect your firm?
RiskPoint/IMA work with law firms to secure tailored cyber liability policies that address the full scope of your digital risk. We understand the intersection of cybersecurity, professional ethics, and client trust. Contact us for a cyber policy review or to explore enhanced coverage options. Download a pdf of this article here.
