Guest blog: Gary Thompson, FCII Chartered Insurance Practitioner
For those law firms who are tempted to underestimate the impact of a cyber event please take note
Written by: David Henderson on Aug 01, 2022
For those law firms who are tempted to underestimate the impact of a cyber event please take note
Written by: David Henderson on Aug 01, 2022
The Law Gazette recently covered the story that "Ince halves in value as ‘financial difficulties' revealed".
Have law firms carefully considered how their insurers/insurance covers will respond if they were to be in a similar situation?
"The firm today told the stock market: ‘The group has now assessed the full impact of the cyber-attack and the board currently estimates that the cash impact on the group will be approximately £4.9m. However, further work needs to be undertaken and this amount may change.
"The group has submitted an initial insurance claim for £4.9m which should partially be covered by the group’s business interruption insurance cover of up to £2m, however the company’s management estimate the claim could take up to 12 months to be processed and received."
It also revealed that the cyber attack "principally affected non-client data and internal systems, including a disruptive impact on billings in the final and very important weeks of FY22, with the recording of hours worked having to move to a manual process and the production of invoices by fee earners being impossible for an extended period."
Ince said the cyber attack, the impact of Covid-19 on the UK market from November 2021, the ongoing impact of coronavirus in Hong Kong and China and the continuing conflict in Ukraine – which has affected global shipping, a "key market" for the firm – all contributed to a "challenging final quarter".
With many law firms reporting record profits will there be a significant correction in the short to medium term possibly with an associated up click in professional liability claims?
You can read the article Gary references in its entirety here: https://www.lawgazette.co.uk/n...
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