Increasing regulatory enquiries now makes Directors & Officers Liability cover an important additional protection to consider.
If an enquiry arises connected to a claim against you for professional negligence, PII policies will typically meet the defence costs involved, but coverage varies and you should check the position when considering renewal.
If no professional indemnity claim is involved and the enquiry is regarding conduct, most PII policies will not help. This is where Directors & Officers Liability ('D&O' - also known sometimes as 'Management Liability') comes in.
A further reason to consider this cover is the prospect of personal liability for principals for data breaches under the GDPR arriving on 25th May 2018.
We have D&O policies available to provide for the cost of regulatory enquiries, and to protect COLP's, COFA's and other senior officials of the firm. Premiums are surprisingly affordable (and much lower than the cost of PII).
If a data breach results in the loss of client monies, your Professional Indemnity Insurer will replace the funds lost, but what if the money is from your office account? Aside from the impact on your bottom line, and possible reputation damage, could your business continue to operate?
GDPR brings with it the need to notify the Information Commissioner of data breaches within 72 hours. Do you have the in-house forensic IT expertise to identify the scale of the problem? Do you know who you would contact for help, if a data breach was suspected?
Cyber insurance is now widely available and can meet these needs. A key benefit for many Law Firms arranging cover is the 24/7 access that good quality policies provide to a cyber incident response team of experts in IT, forensics, PR, accounting and law. Without cyber insurance the cost of these experts at your time of need can be crippling, and Insurers have arranged commercially discounted charges which are covered by a cyber policy.
Premiums for most Law Firms are modest unless you have a high risk profile. To obtain a free of charge quotation or to find out more please call or email. Your enquiry will be treated in the strictest confidence.