Lockton Launches Seamless Insurance Solution for UK Solicitors
Introducing Interlock – a unique insurance solution for the UK legal sector combining PII, cyber and crime cover in one policy
LONDON, 1 September 2017 – Lockton, one of the leading providers of Insurance solutions for law firms in England and Wales, has created a unique ‘interlocking’ insurance product for the UK legal sector that combines both cyber and crime cover with compulsory Solicitors’ Regulation Authority (SRA) Professional Indemnity Insurance (PII) protection in one insurance policy.
Interlock has been created in response to the growing threat posed by sophisticated criminals specifically targeting law firms, as well as the need for legal firms to address and protect their risk profile as new regulatory obligations are introduced. It protects first and third-party interests by covering both law firms and their clients.
In an event where the insurance needs to be utilised, a firm simply triggers one fully-integrated policy, avoiding potential delays caused by juggling multiple policies with different insurers. The Incidence Response Team then works quickly to help clients understand their situation, identifies and rectifies the problem quickly and cost-effectively.
Brian Boehmer, Partner of Lockton’s Solicitors Practice said:
“Interlock is a first-of-its-kind product that provides a much needed solution to modern day business risks affecting legal firms in England and Wales. Until now, the regulated legal profession has been limited to ‘bundled’ products where separate policies cover the firm. A potential issue that may arise with separate insurance policies is that insurance could be available on more than one of the policies. Insurers could argue over who is liable for what, causing unnecessary conflict between insurers and delays for the insurance buyer. With Interlock, this won’t be the case.”
Real-Life Risks for Firms and Clients
According to the British Chambers of Commerce, one in five businesses have fallen victim to cyber attacks in the past year1. Interlock’s cyber cover offers both value and assistance in minimising the damage a cyber attack can have on businesses of all sizes, and includes breach of privacy; business interruption; media risk; malicious code; cyber extortion and claims expenses.
Last year it was also revealed that £85m had been stolen by hackers from law firms in an 18 month period2. Three quarters reported to the SRA in 2016 were some form of ‘Friday afternoon fraud’, with £7m of client losses resulting from email hacks of conveyancing transactions3. Interlock protects any such incidence, and covers funds held both in the office and in the client’s account from both external and internal threats, including cyber related crime.
Lockton’s PII product is underwritten by leading insurers with a strong capital base as evidenced by their AA – (“Very Strong”) S&P and A+ (“Superior”) A.M. Best ratings.
Additional areas covered by the policy include computer and rectification costs; forensic and security specialist costs; crisis management and PR costs and legal costs.
Boehmer added: “When a cyber breach happens, time is of the essence. The seamless nature of this product allows clients to report and deal with cyber breaches efficiently without the need to activate multiple policies. Expert responders are on hand to guide clients through the process and help rectify the security issue as quickly as possible.
“The Lockton Solicitors team is proud of its ability to proactively identify new business risks affecting the legal profession and offer unique solutions as part of its exceptional client support.”
Kindly shared by Lockton