As law firms face increasing threats from cybercriminals, the importance of cyber insurance has never been greater. We sat down with Adam Pierce with Lawyers Insurance Agency and one of our cyber insurance experts to answer frequently asked questions and offer insights into how you can protect your firm.

CS: What kinds of cyber claims are you seeing so far this year?

Adam: Over the past couple of years, the most common claims have been ransomware attacks and business email compromises (BECs). Recently, we’ve seen a resurgence in funds transfer fraud—a reminder that we can’t afford to let our guard down with wire transfer procedures.

Interestingly, many of these incidents stem from something as simple as an employee clicking a malicious link. Two top recommendations for every firm this year:

1. Invest in cyber security training for your staff.
2. Enforce strict electronic payment protocols.

CS: If we experience a cyber claim, will we still be insurable?

Adam: Generally, yes. Most insurers will continue coverage if you take meaningful steps to reduce future risks. That could include:

• Adding tools like email filtering, endpoint detection and response (EDR), or managed detection and response (MDR)
• Implementing employee training programs

Premiums may go up temporarily after a claim, but proactive security measures can minimize the impact.

CS: Are there any new developments in cyber insurance we should be aware of?

Adam: Yes! One of our key partners, Coalition, now offers optional cyber security training with its policies. This gives firms access to employee training throughout the policy term. Even better—it includes an additional $50,000 in coverage for funds transfer fraud and social engineering incidents.

Given the importance of training in preventing cyber claims, this is a fantastic added value.

CS: What are the barriers to getting cyber insurance coverage?

Adam: Most carriers have basic security expectations. These include:

• Multi-Factor Authentication (MFA) for all remote access, including email
• Strong controls for wire transfers (e.g., verifying instructions using a method separate from the original email)
• Some carriers scan your firm’s domain and may require action:
  • Ensuring your firewall or devices (like Sonicwall) are patched and protected
  • Hiding any Remote Desktop Protocol (RDP) ports behind firewalls and MFA

Being proactive with these measures can make obtaining coverage much smoother.

CS: We haven’t purchased cyber insurance yet—what should we do?

Adam: Get it now. You may never experience a house fire, but you still buy homeowner’s insurance. The same logic applies here. While you may never suffer a cyberattack, the potential damage is enormous—and more common than you might think. Many law firms have avoided catastrophe thanks to their cyber coverage.

CS: How much cyber insurance coverage does a small law firm really need?

Adam: It depends on your size, data volume, and client base, but a good starting point is at least $500,000 in coverage. Firms handling sensitive client information, large sums of money, or healthcare data may need $1 million or more.

CS: Is cyber insurance expensive?

Adam: Costs vary based on your firm’s size, coverage level, and security posture, but policies are often less expensive than expected—especially when compared to the cost of recovering from a breach.

CS: Can cyber insurance help us respond to a breach?

Adam: Absolutely. Most policies include incident response services, which can provide immediate help from cybersecurity experts, legal counsel, and PR professionals. This quick response is often critical in minimizing damage.

CS: How do we get started?

Adam: I’d love to have a conversation with you. I can help you:

• Evaluate your firm’s risk profile
• Compare policy options
• Understand security requirements

Cyber threats are not going away, and law firms remain attractive targets. Cyber insurance isn’t just a safety net—it’s a strategic asset.

If you’d like help evaluating your current cyber protection or getting a quote, reach out to Adam Pierce at Lawyers Insurance Agency at 800.662.8843 or adam@lawyersmutualnc.com.