Extract from Jon Campisi’s article “As Law Firm AI Use Grows, Firms Look to Mitigate Risk With Added Insurance”
Law firms are eyeing up new and emerging risks, including ones associated with increased artificial intelligence use, and more firm leaders say they plan to expand their insurance coverage to ensure their greatest business risks will be covered in the digital era, according to new findings by digital insurance company Embroker.
In its second annual Legal Industry Risk Index, Embroker found that nearly half of the 245 legal professionals surveyed in June—45%—said they plan to enhance their insurance policies, with more legal professionals securing dedicated cyber coverage in an era where law firms are becoming more digitized.
Embroker called the 45% figure a “substantial increase” from the mere 14% reported just last year.
The surge reflects the fact that the legal industry, by and large, is following the path of other industries who are becoming more tech-enabled in their businesses, both from the standpoint of enhanced client value and increased operational efficiency.
“The findings suggest a notable shift in how the legal profession is balancing innovation with risk management,” Andy Lea, Embroker’s chief insurance officer, said in emailed comments. “What emerges from the data is an industry that appears to be taking a more strategic approach to both technology adoption and protective planning.”
