Cyber-insurance increasingly popular in annual indemnity survey

A record number of law firms are taking out cyber-insurance as online fraudsters run rife in the sector.

According to new research from the Law Society, more than a quarter (26 per cent) of firms were targeted by cyber criminals in the last 12 months.

If only large firms were included, that figure rises to 64 per cent, compared to 44 per cent the year previous.

Spam emails and phishing were by far the most common form of scam, followed by malware and computer viruses, cyber-attacks, telephone calls and vishing, and invoice fraud.

As a result, around 42 per cent of law firms with 5 to 25 partners now have cyber insurance in place, while firms that don’t have cyber-insurance consider it as one of their top priorities.

The survey formed part of the Law Society’s annual indemnity insurance report, which found that the average cost of insurance for 11 to 25 partner firms fell from £154,346 to £127,965.

Law Society president Joe Egan said: “It is vital firms keep their risk management up to date – particularly in relation to scams – if they wish to continue to benefit from lower PII premiums.

“Some insurers now ask about the measures firms have taken to protect against scams, including their security and IT systems. The Law Society provides training and resources to help solicitors prevent scams and keep up to date on this important issue.”

Mr Egan added: “Brexit-borne uncertainty does not appear to have affected solicitors’ PII and the average premium has actually dropped slightly.

“This continued market stability is good news for both clients and the profession, so it’s well worth shopping around for a good deal – surprisingly few firms do at the moment.”