Network Security Liability
Key Takeaway
Third-party cyber coverage that responds when the insured's failure to prevent unauthorized access to their computer network results in harm to others. For law firms, this covers situations where a firm's compromised systems are used to launch attacks on clients or where client data is exposed due to inadequate security measures..
Definition
Third-party cyber coverage that responds when the insured's failure to prevent unauthorized access to their computer network results in harm to others. For law firms, this covers situations where a firm's compromised systems are used to launch attacks on clients or where client data is exposed due to inadequate security measures.
Why This Matters for Law Firms
This term defines the boundaries of what your insurance will and will not pay for. Law firms that misunderstand coverage terms risk discovering gaps in protection only after a claim has been filed, when it is too late to remedy the situation. Reviewing these terms with your broker before binding coverage is a critical risk management step.
Example Usage in Context
During a coverage review meeting, the firm administrator might note: "Our policy includes a network security liability provision -- let's make sure we understand exactly what that means for our specific practice areas before we sign off on the renewal."
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