The American Bar Association (ABA) Offers Access to “Cybersecurity” Insurance

This addition comes after the increasing number of firms that have fallen victim to hackers. The purchase and retention of cybersecurity insurance would assist lawyers in following 2012 changes to Model Rule 1.1 Competence found in the Rule’s comments.

The ABA amended comment 8 to Model Rule 1.1 to state, “lawyer should keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology (emphasis added).”

Since 2012, approximately 38 states have made similar changes to their rules. Nonetheless, even without an official rule change, there is a growing national consensus that lawyers must understand benefits and risks associated with technology in order to remain competent.

The new cybersecurity insurance offered by the ABA covers expenses needed to deal with network extortion, income loss, and forensics associated with cyber breach; liability protection if a third party is affected; defense costs; and expenses for fines and/or penalties. The ABA also announced that firms can add services to prevent network incidents and mitigate damage via identifying risks and providing fraud consultation, credit monitoring, and identity restoration services.

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