Last week, ABA announced that it would supplement its insurance certificates to include cyber insurance. Chubb Limited will assure the insurance, which ABA said, "includes cyber protection for the company's own expenses, such as network expressions, loss of income, and forensics, associated with a cyber accident, and for liability and defense costs."  In its press release, ABA referred the revelations at the end of last year that Chinese citizens had hacked two law firms to obtain merger information. The hackers thus used the insider information to make more than $ 4 million by trading stocks in the target companies.
Companies can also come to trial for not protecting confidential information. For example, a Chicago company was sued in a class action claiming that failure to protect customer confidential information. While traditional insurance may include such a costume, cyber insurance is another available form of coverage.
Hackers can also launch ransomware attacks on law firms. Such attacks involve malicious software installed on a computer system. The software encrypts the files on the computer, making it inaccessible. The hackers then threaten to destroy the files unless a ransom amount is paid. Again, cyber-specific insurance can cover losses arising from such events.
In conclusion, the law firms are not immunized against the cyber risks facing all companies and should consider covering cyber to complement other insurance policies that can cover cyber-related losses.