Lawyers E&O and the Risk of Technology

Lawyers E&O and the Risk of Technology

These days, it seems like everything is moving more and more towards complete technological immersion. With the increased use of technology, comes a much higher risk level for everyone involved, especially when it comes to businesses or professional individuals. In fact, in one survey, 53% of businesses stated that their biggest concerns for liability are associated with technology and problems such as data breaches or hacking.

 

Without errors and omissions insurance for lawyers, these professionals can be sued for countless reasons, and the use of technology only increases the risk that an error will be made that can make them vulnerable to such a lawsuit. This fear had to only be heightened with the recent Heartbleed bug scare, which was a vulnerability within certain versions of Open SSL an open source implementation of Secure Sockets Layer (SSL), providing the opportunity for hackers to access a lot of secure information.

 

The best way to avoid an errors and omissions insurance claim that involves a data breach would be to minimize the problem of a cyber attack. However, this is not always possible and if a data breach does occur and sensitive information is or potentially is lost, there are several courses of action that could possibly help prevent claims from being filed.

 

The first thing that should happen following a data breach is a quick response to the situation, informing customers that there is a possibility that their data has been compromised so that that they can take the necessary action to protect themselves. When making these releases, it is also important to be cohesive as a group because by placing the blame on one person, it appears as though certain individuals are trying to deflect blame rather than correct the problem as best they can.

 

By keeping at least these two factors in mind when a data breach occurs, there is a possibility that one can minimize his or her vulnerability for claims under errors and omissions insurance.  Everyone makes mistakes, even the most meticulous of professionals, and there is a chance that consumers will be able to understand that professionals are human beings just as they are if the response is comprehensive and responsive to their needs after an error is made. However, in the case that a claim is filed, errors and omissions insurance for lawyers, along with cyber coverage, can help pick up the pieces and ensure that deserving professionals are not burdened unnecessarily by hefty lawsuits.

 

photo credit: Jon McGovern cc

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