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    How To Cover Cyber Crime Costs

    Most businesses are worried about being impacted by cyber crime these days and have invested in online security to protect themselves as much as possible. However, many of these companies would still not know what to do if they are attacked by hackers, especially when it comes to recouping the costs and losses they experience as a result. 

    This is why the Law Society of England and Wales released guidance, intended to help legal firms stay afloat if they become victims of criminal activity. 

    Stephanie Boyce, president of the Law Society, stated: “Protection and prevention should be a firm’s priorities to guard against damaging cyber losses. Insurance is not a substitute for good protection … this should be as an additional safeguard to cover certain costs and losses in the event of a cyber loss, which affects the firm’s computer systems and could lead to a data breach.”

    She went on to say while not obligatory to buy cyber insurance, it is a “sensible precaution”. 

    While the guidance is aimed at law firms, the advice to seek out as much protection as possible, whether in the form of cyber security or insurance, applies to all companies. 

    The reason the Law Society is warning legal firms about having the correct insurance in place is because the Solicitors Regulation Authority revised its minimum terms and conditions last year with regards to solicitors’ professional indemnity insurance. In the updated version, it excluded first party losses that are the direct result of cyber attacks. 

    More and more businesses should take note of this advice, after IT Governance revealed there was a 11 per cent increase in online security breaches between 2020 and 2021.

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