Lawyers are often asked to safeguard sensitive information, but their ability to do so can be undermined by weak cybersecurity and determined hackers. Should a firm's security be breached, cyber insurance may help protect against subsequent losses.
Cyber insurance is a growing industry, bringing in more than $2 billion in premium payments in 2014. Major players in both cyber security and insurance have begun to focus on this niche market, with former U.S. homeland security chief Tom Ridge joining recently with Lloyd's of London to create a cyber insurance company, as the Financial Times reports. Yet, as with all insurance policies, terms and conditions can vary greatly from policy to policy.