Ensuring your documents and data are kept confidential in today’s digital age has never been more critical.

As such, data rooms for law firms have become increasingly popular.

Virtual data rooms allow multiple professionals to access documents securely.

Most industries could benefit from adopting them, but they are particularly useful for legal organizations.

Let’s talk about how your law firm can make the most out of this software to safeguard your sensitive information:

What is a data room

Have you ever thought that your job would be easier if everyone you dealt with was in one place?

Maybe you’ve been struggling with multiple email threads or had to travel miles to review a document in person.

With remote working only becoming more popular, taking advantage of virtual solutions is wise.

A data room – also known as a VDR room – is a great way to overcome these issues.

Think of data rooms as a digital version of a physical room, containing everyone you need to work with and all the documents you need to review.

Based in the cloud, a data room is a secure piece of software that will ensure you can safely access all relevant files and data from anywhere.

Why do law firms use data rooms?

Law firms, especially data lawyers, naturally work with information that has to be kept confidential. This makes data rooms the best way to work remotely.

Unlike most free cloud-based storage solutions, they are secure enough to prevent data breaches and unauthorized access.

Data rooms are designed to improve legal firms’ productivity.

You can easily share documents with others, while collaborative work is made simpler by tools such as live discussion and task assignment.

You also won’t have to worry about ditching your existing software because you can fully integrate most data rooms with programs like Microsoft Office or Slack.

All of this means data rooms for law firms are becoming a central part of the industry.

There are several ways using a data room can benefit your legal firm:

The benefits of having a legal data room

1. Improved security

Data rooms come with cutting-edge security features that will ensure that your clients’ information is kept confidential.

Access controls mean that only people authorized by the administrator are able to enter the data room.

Two-factor authentication for everyone who accesses the room combined with document encryption means the risk of a data breach is low.

2. Easier document management

Legal data rooms are optimized for lawyers to organize, search, and edit documents according to their needs.

Everyone in your firm will easily be able to work with the documents crucial to your operations rather than having to search across hundreds of unorganized folders and files.

3. Stronger collaboration

Collaborative work is the cornerstone of any good legal practice.

If you use a data room, you’ll no longer have to struggle with miscommunication over email, video calling, or instant messaging.

Instead, you can communicate through the data room, with the relevant data and documents in front of you.

Moreover, data rooms often include collaborative editing tools, meaning you can leave notes and queries on your colleagues’ work.

You’ll also be able to add an e-signature to documents within the data room.

4. Efficient cost savings

The costs that come with old-fashioned document management – such as printing and mailing – can soon stack up.

Virtual data rooms allow you to squash these expenses while ensuring you don’t have to spend resources on a physical data room.

5. Increased compliance

Data regulations such as GDPR are increasingly important for legal firms.

Thanks to their security, data rooms are fully compliant with these regulations, meaning you have more time to focus on more productive work.

When considering which data room service to use in your law firm, look out for these key features:

1. Access control

Legal data rooms give you complete control over who can access each specific file or document.

This means people can only view or edit the documents necessary to their role and that sensitive documents are kept confidential.

2. Document security

Similarly, data rooms include a variety of security measures to protect against unauthorized access and data breaches.

These can go from encryption to watermarking, while two-factor authentication adds an extra layer of security.

You can also add time or IP restrictions to restrict the viewing of documents to trusted devices within the working day and prevent screenshots or copies of sensitive information.

3. Collaboration tools

As well as security features, the best data rooms will include the sort of collaboration tools that make remote working much easier.

Features such as document commenting and notifications that alert users when updates are added streamline collaborative work.

Data rooms also include activity tracking.

This means you can see who has worked on specific documents and gain insights into how frequently documents are accessed and downloaded.

Virtual data rooms are the best way to speed up work in your law firm while also improving the security of your operations.

They simplify document management by reducing the need for costly physical documents and time-consuming unorganized collaboration.

They also come with solid security features that will put your mind at ease.

Using a data room that offers all of these benefits – such as Pandadoc’s VDR room – will mean you can make the most of features such as access control, collaborative working, and document security to set up transactions quicker today.


PandDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDocs services are governed by our Terms of Use and Privacy Policy.