Sales of insurance in Q4 surged among law firms with 50 or few lawyers, according to BigData Insure of Chicago. This was after the high-profile hack attack on Sony. Large law firms are expanding the eventualities they are insuring for - now spreading to notifying clients or employees of attacks, payouts to regulators and carrying out internal investigations. Medium- and smaller firms are also beginning to buy this kind of cover. Law firms also appear to be buying more add-on cover in the form of specialist cyber policies - sometimes at a month's notice - rather than waiting for annual or bi-annual or tri-annual renewals of overall policies.
Cost of $10m cover
A survey by NetDiligence in Philadelphia found last year that professional services account for 10 per cent of cyber insurance claims. Large firms are paying between US$40,000 and $70,000 a year to cover $5m to $10m of claims, according to Regan Miller of Wortham Insurance in Houston. Source: Crain's Chicago Business
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