The Case for Excess
In the January 2016 issue of InBrief, we laid out the case for why Oregon law firms should consider purchasing Excess Coverage.
View the article above to see if Excess Coverage is right for your firm.
Cyber Liability & Breach Response Endorsement
Beginning in 2013, the PLF added a Cyber Liability & Breach Response Endorsement (“Endorsement”) to all PLF Excess Coverage plans. The Endorsement provides coverage for information security and privacy liability, privacy breach response services, regulatory defense and penalties, website media content liability, and crisis management and public relations services. The Endorsement covers many claims that would otherwise be excluded under both PLF primary and excess plans.
The limits provided under the Endorsement are different than the Excess Coverage limits purchased by a law firm. Limits under the Endorsement depend entirely on the size of the law firm:
- $100,000 for firms with 1-10 attorneys
- $250,000 for firms with 11 or more attorneys
If your law firm requires higher limits for cyber liability, please contact us at email@example.com as those limits are available on a separately underwritten basis.
Cyber Extortion Coverage
In 2016, the Endorsement was expanded to begin including coverage for Cyber Extortion events at no additional cost to covered law firms.
Cyber extortion occurs when a business’s computer system is attacked and data stored on the computers and/or networks is rendered unusable because it is encrypted by extortionists. The only possibility for release of that data (unless it is otherwise backed up on a non-infected drive) is through satisfying a payment demand. Another term for this type of virus or attack is ransomware. The PLF is aware of at least one cyber extortion attack made against an Oregon law firm in 2015. That claim would not have been covered under prior Endorsements. Nor is there coverage for these claims under the PLF Primary Claims Made Plan.
Under the 2016 Endorsement, the limit available to cover Cyber Extortion claims is $10,000 with a $2,000 deductible. Though cyber extortion demands are often quite small (many would not exceed the deductible), it is important for the PLF to be aware of these claims and have them monitored under the Endorsement. This would be particularly valuable if additional claims resulted from the Cyber Extortion event that might also be covered under other terms of the Endorsement. We believe this added coverage is of great benefit to Oregon law firms and are pleased to include it in our Excess Coverage for this year.