Cyber Liability Insurance

For medical professionals, health care and senior living facilities

What is Cyber Insurance?

Cyber Liability insurance or cyber insurance, protects medical practices, organizations and professionals against data breaches and other cyber security threats including ransomware attacks. The stakes are higher in health care and senior living than other industries because of the sensitive patient data they hold and the legal consequences of leaking the medical records of patients.

There is a high likelihood that most healthcare organizations will suffer a cyber breach of some kind and without insurance coverage these attacks can be devastating and can even result in bankruptcy. Most organizations and medical professionals keep patient records on a network which has internet connection. A cyber attack can lead to those medical records being locked up or even leaked, resulting in litigation by the patient.

Cyber protection is more than just being insured. Organizations must be proactive in preventing cyber attacks, so Westwood arrange tools and resources to manage and mitigate cyber risk for cyber insurance policyholders.

What does cyber liability insurance cover?

Cyber liability insurance will typically cover costs associated with cyber attacks and data breaches on your business. This can include lost income resulting from a cyber attack, costs associated with notifying customers who were affected by the breach, the costs of recovering compromised data, repairing damaged computer systems and even the costs of resolving a ransomware attack.

Cyber liability coverage can protect medical facilities and professionals against the devastating financial consequences of a cyber attack. The leading cyber insurance providers offer customized insurance solutions depending on the level of risk your organization faces.

Coverage options can include:

  • Forensic investigations,
  • Litigation expenses,
  • Regulatory defense expenses/fines,
  • Crisis management expenses,
  • Business interruption,
  • Cyber extortion, and
  • Betterment.

How Cyber Insurance Helps before and after the breach:

Our leading cyber insurance provider supports clients, before and after any cyber attack. They help you manage both short- and long-term issues that arise from the cyber attack, including:

  • A Cyber Security helpline to provide expert answers to your questions about preventing a data breach.
  • A HIPAA Coach who can advise you of the steps you should take to safeguard Protected Health Information (PHI) from a data breach.
  • A specialist to help you isolate the data affected by the breach, notify the customers impacted by it, retain the necessary forensics experts and manage your crisis communications.
  • A specialist who can help you determine the potential for any regulatory penalties and the possibility of legal action. They will help you to identify the next steps you should take.
Insurance protects against cyber attacks

Every medical facility should be prepared for some kind of cyber attack – from a simple hack to something more serious, like a ransomware attack.

Who needs cyber liability insurance?

Anybody who is operating a medical facility or works independently as a medical professional should be covered with cyber liability insurance. Ransomware attacks are on the increase and healthcare facilities are a favorite target because of the sensitive patient data they store. They will usually pay the ransoms demanded by hackers, to avoid being taken offline and risking the lives of their patients.

Health care and senior living industries can also face huge fines under the HIPAA Act. (Health Insurance Portability and Accountability Act) for not safeguarding medical information. So the costs of a single cyber incident can be catastrophic.

As well as the financial costs of litigation, there are the regulatory defense expenses and the costs associated with mandated notification requirements. Then there is also the time effort and expense involved in defending your company’s reputation.

This is all on top of the need to hire computer forensics experts to determine the extent of a breach and determine any private customer information that may have been compromised.

Aged care facilities are particularly vulnerable, including: adult day care centersassisted living facilitiesresidential care centersskilled nursing facilitiesnursing care centers, and continuing care retirement communities. This is because patient records are vital to ensure the correct medication and care is applied to each particular patient.

Even other service providers for the elderly and disabled should absolutely be covered by cyber liability insurance.

All medical facilities have records that are vulnerable to cyber attacks, including physical therapy clinicsmedical spasdiagnostic imaging and X-Ray centers and hospitals.

 

How Much Does Cyber Insurance Cost?

The cost of cyber liability insurance varies, depending on your level of risk. Cyber insurance costs have risen faster than any other type of insurance in recent years due to the increased risk of attacks.

A primary care practice with five doctors would typically pay between $2,000 and $8,000 for $1 million to $5 million in coverage. The cost depends largely on how well protected their online systems are and their history of cyber security.

To avoid paying high premiums, take our free cyber risk assessment and discover how vulnerable your systems are. This a leading industry system that scours the web, detecting your online systems and testing the different ports (or doorways) that an attacker can use to access your data. The system also combs the dark web, searching hackers shared information, to find mentions of your company or employee login information that has been gathered by hackers during their reconnaissance operations .

Once you have completed this assessment, you can take steps to tighten up your security and reduce the chance of paying overly high premiums for your cyber liability insurance.

 

Dale Nelson discusses cyber liability insurance

Dale who is a senior broker with the Westwood Insurance Group, speaks about his experience with Cyber Liability Insurance, the markets offering this coverage and the different types of Cyber Liability.

Contact Dale Nelson now

Dale Nelson of Westwood Insurance Group

Dale specializes in insurance for home healthcare providers. You can call him on the number below or fill out the form and he will get your message directly:

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