‘Silent cyber’ cover is the provision, of cover for cyber risks in insurance policies which neither expressly include or exclude such cover.  Cover under the SRA Minimum Terms and Conditions (MTC) for client claims arising from cyber risks is an illustration of this and may extend cover to missing time limits or otherwise being unable to provide proper service due to a ransomware attack, statutory claims under the Data Protection Act 2018 or GDPR, and ‘Friday afternoon frauds’ where firms have been duped into sending client money to criminals.

Following concerns raised by the Prudential Regulation Authority and a Supervisory Statement in July 2017, insurers were expected to reduce their unintended exposure to cyber risks.  We are aware of moves by insurers to restrict the MTC cover which could adversely impact on law firms.

‹ Back to Publications