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Nov/Dec  Volume 29, Number 6        
 

This Just In ...

According to The CPA Journal, a new series of cyber-related class action claims against at least 15 law firms could have serious implications for how all businesses manage their computer systems and view data security.

The most troubling aspect of the class action suit centers on the fact that there was no actual breach of confidential client information, merely the possibility of a breach.

The complaint in the case alleges that the business was responsible for "a data breach waiting to happen" and claims that, among other computer-related issues, the "time record system could have been accessed without any username or password (or any other credential)."

To make matters worse for potential defendants, claims such as these are probably uninsurable, so they could become quite costly. It is no longer enough to simply avoid a data breach; firms and clients must become proactive and deliberate about network and data security.

Even though there is no absolutely sure-fire way to protect digital data and computer systems, the Insurance Information Institute recommends businesses take steps to limit their cyber liability risk by:

  1. Installing, maintaining and updating security software and hardware.
  2. Contracting with an IT security services vendor.
  3. Using cloud computing services.
  4. Developing, following and publicly posting a data privacy policy.
  5. Regularly backing up data at a secure offsite location.
  6. Obtaining appropriate cyber liability insurance.

Please contact us to discuss your cyber liability exposures and needs.

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In this issue:

This Just In...

Marijuana Use Linked to Increased Car Crashes

Do You Need Professional Liability Insurance?

What's a "Reservation of Rights" Letter?

What's a "Reasonable Accommodation"?

 

 


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