Why Is Cyber Insurance for Law Firms More Expensive?

Law firms rank among the most expensive industries to insure for cyber liability, according to AdvisorSmith’s industry study. Two things drive that: the sensitivity of the data (privileged client communications and case information), and a well-documented attack pattern of business email compromise schemes targeting trust account wire transfers during closings and settlements.

Firms are also bound by ethics rules (ABA Model Rule 1.6(c) and Formal Opinion 477R) requiring reasonable safeguards for client information, which raises the stakes of a breach beyond just financial loss. See our dedicated cyber liability insurance for law firms page for the full regulatory and risk picture.