There has been global attacks left and right and DLA Piper is one of the victims of the cyber criminal activity.
Costs of fixing a compromised system has increased recently due to malware threats and attacks. Insurance experts say that many of the costs associated with the malware attack on DLA Piper last month are covered by insurance.
There is such a thing as cyber attack insurance which could cover external support and loss of income to get the computer systems back up and running again.
It has been said that firms could buy coverage up to $500 million, though the norm for coverage that augments third-party liability in professional indemnity insurance is for up to $100 million.
“Professional indemnity insurance is designed to protect clients, and not a law firm’s exposure to cyber risk, experts told Legal Week. PI insurance typically covers loss of client money or data, but it doesn’t cover costs of dealing with a cyber attack.”
Experts estimate the cost in connection with the attack on DLA Piper would rack up to millions according to Brett Warburton Smith, a partner at independent insurance broker of Lockton Solicitors.
“An insurance broker said her company offers cyber attack insurance that covers access to specialist law firms, a public relations firm, loss of income, and even a percentage of a success fee stemming from a lost client. Coverage could also include mitigation expenses, such as the costs of working remotely and outsourcing urgent work.”
Due to the said attack, DLA Piper have opted to shut down its computer systems as a precautionary measure upon detecting an anomalous and suspicious network activity. As of now, their email system is back up and the law firm is making sure that other systems being brought back online is also secured which is according to an update from the law firm last July 10, 2017.
Upon further inspection, there seems to be no evidence of client data leaking out or that confidentiality has been breached as per their spokesperson.
Ransomware threats and cyber attacks are compromising more and more system every single day. It is a well orchestrated attack and are professionally made. Even banks are not safe from these threats and are placed on top of the lists of targets of the cyber criminals.
It is a serious threat and is growing at an alarming rate. Newer technologies and innovations are needed to thwart them in the future. But as of now, IT experts are on the edge of their seats trying to do counter-measures to ensure that systems around the world are safe.