In a digital age where legal practices rely heavily on technology, the threat of cybercrime is no longer a question of “if”, but “when”. Irish solicitors, who are entrusted with highly confidential client data, are particularly vulnerable. One way to mitigate these risks is through cyber security insurance – but is it worth it? Paul Delahunty explores the pros and cons and other considerations below.

What is Cyber Security Insurance?

Cyber Security Insurance (also known as cyber liability insurance) is designed to help businesses recover from cyber incidents such as data breaches, ransomware attacks, or business email compromise. It can cover costs such as:

• legal fees and regulatory fines
• data recovery and system repairs
• notification costs to affected clients
• business interruption and loss of income, or
• reputation management and PR

Pros of Cyber Security Insurance for solicitors

• Financial protection: Cyber incidents can be incredibly costly. A well-structured policy can shield your firm from the financial fallout of a major breach or ransomware demand.
• Client confidence: Being insured demonstrates to clients that you take data protection seriously. It may even be a competitive differentiator.
• Regulatory compliance support: With GDPR and other regulations impacting solicitors, handling breaches properly is crucial. Insurers often provide breach response services that help you stay compliant.
• Access to expert services: Many policies include access to cyber incident response teams, legal experts, forensic analysts, and crisis communications support.
• Business continuity: Insurance can help you resume operations faster by covering downtime losses and paying for temporary solutions.

Cons and pitfalls to watch out for

• Not all policies are equal: Cyber policies vary widely in terms of coverage, exclusions, and definitions. Some may exclude insider threats or newer types of attacks.
• Cost vs benefit: Premiums can be high, especially for firms with legacy systems or inadequate practices. If your risk profile is low and existing security is robust, you may be overpaying.
• False sense of security: Insurance is not a substitute for good practices and protections. Firms may become complacent, thinking their insurance is a catch-all solution.
• Claims complexity: Insurers may deny claims due to technicalities, such as failure to maintain minimum cybersecurity standards required by the policy.

Should solicitors invest?

Yes, but with caution. For most Irish solicitors, especially those handling high volumes of sensitive data or operating digitally, cyber insurance is a smart investment. However, its value depends on choosing the right policy and maintaining a strong cyber security posture.

Key considerations before buying

1. Assess your risk profile

   What kind of data do you hold?

   Do you use cloud services or remote access?

   Have you experienced an attack before?

2. Evaluate your existing security

   Do you have firewalls, antivirus, encryption, and employee training in place?

   Do you align to any recognised security standard?

   Some insurers offer better rates for firms with robust systems.

3. Understand the policy details

   What is the coverage limit and excess?

   Are ransomware payments included?

   What’s excluded? (e.g. acts of war, employee negligence)

4. Check for breach response services

   Does the policy include immediate access to a breach response team?

5. Align with GDPR and Law Society guidelines

   Ensure the policy supports GDPR compliance obligations, such as client notifications and reporting.

6. Work with a specialist broker

   A broker with experience in legal-sector policies can help you avoid gaps in coverage.

Final thoughts

Cyber threats are evolving, and the legal sector is squarely in the crosshairs. While cyber insurance is no substitute for a strong cyber security posture and won’t prevent a breach, it can greatly reduce the impact and aid in recovery. For Irish solicitors, it’s not just about protecting your firm, it’s about safeguarding your clients and your reputation. But do your homework first.

Paul Delahunty is Chief Information Security Officer at Stryve, a leading Irish multi-cloud and cybersecurity company and ICTTF Cyber Security Company of the Year 2022. Paul is CIO and IT Leaders Security Leader of the Year 2023 and 2024 and is the Tech Excellence Awards CIO of the Year 2024.

Law Society services and support

Reduce your cybersecurity risk through information and resources designed for the profession including more practical tips, a comprehensive Library guide and an online, on-demand CPD course. Access all relevant services and previous articles at the link below:

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