The FBI has identified law firms as a major target of hackers. In response, CNA, the country’s eighth largest commercial insurance company, now offers firms with up to five attorneys a new Lawyers Data Breach and Network Security Endorsement available on their Lawyers Professional Liability (LPL) policy. This endorsement affords the following additional coverages not included in CNA’s standard LPL policy:
• Network Damage Claims – Coverage is afforded, up to the Lawyers Data Breach and Network Security Limit of Liability for Network Damage Claims set forth in the endorsement, for Network Damage Claims brought by non-client third parties.
• Privacy Event Response – Coverage is afforded, up to 10 percent of the Network Damage Claim Limit Liability, for reimbursement of certain expenses incurred by the Named Insured.
• The Network Damage Claim limit and Privacy Event Expenses limit are separate from and do not erode the LPL Limit.
• The Limits of Liability for Network Damage Claim Limit (both per Claim and Aggregate) and the Limit of Liability for all Privacy Event Expenses are sub-limits of the All Network Damage Claims and Privacy Event Expenses in the Aggregate Limit of Liability of the endorsement. The amount of the Aggregate Limit of Liability offered for all Network Damage Claims shall be the same as the amount offered for the All Network Damage Claims and Privacy Event Expenses in the Aggregate Limit of Liability.
• There are separate deductibles for this endorsement for Network Damage Claims and Privacy Event Expenses which would apply in addition to the LPL deductible to the extent coverage is available under both the policy and the endorsement.
A standalone cyber liability policy is also available. To learn more, contact Lockton Affinity, the ISBA’s endorsed provider of professional liability insurance, at 1-800-679-7154.