11:05, July 10 410 0 abajournal.com

2017-07-10 11:05:04
Costs of ransomware attack on DLA Piper could be in the millions; does insurance cover it?

Firms could buy coverage of up to $500 million, though the norm for coverage that augments third-party liability in professional indemnity insurance is for up to $100 million.

Professional indemnity insurance is designed to protect clients, and not a law firm’s exposure to cyber risk, experts told Legal Week. PI insurance typically covers loss of client money or data, but it doesn’t cover costs of dealing with a cyberattack.

Total costs in connection with the cyberattack on DLA Piper could each millons, according to Brett Warburton Smith, a partner at independent insurance broker Lockton Solicitors.

One insurance broker said her company offers cyberattack insurance that covers access to specialist law firms, a public relations firm, loss of income, and even a percentage of a success fee stemming from a lost client. Coverage could also include mitigation expenses, such as the costs of working remotely and outsourcing urgent work.

DLA Piper shut down its computer systems as a precauationary measure after it detected suspicious activity on its network. Email is back up and the law firm is “bringing other major systems online in a secure manner as well,” according to a July 10 update by the law firm.

DLA Piper continues to see no evidence that client data was taken or that confidentiality was breached, the statement said.