We have previously posted that a good Data Breach/Cyber Liability Insurance offers 1st party and 3rd party coverage. It needs to respond to the following exposures:
1st Party Claims
1. Incident Response Services
2. Ransom demands to unlock your system.
3. Notification requirements costs from federal & state laws & regulations to your clients that have suffered a data breach
4. System assistance in restoring your systems and data
5. Loss of income for the time that it takes to recover from a data breach
6. Harm to reputation & goodwill
7. Crisis Management and public relations costs
3rd Party Claims
1. Damages to clients that have suffered a data breach
2. Cost of defense to defend you from these claims
3. Regulatory Violations, fines and penalties that may be accessed against the firm
The following ABA Journal article discussing this and more, stating that Cyber Insurance is Essential for a Law Firm.