Cyber liability insurance, also called cybersecurity insurance, protects small businesses from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.
Cyber insurance protects medical practices and other healthcare businesses in the event sensitive information is compromised. This policy can cover legal costs and provide essential resources.
This policy provides liability coverage related to:
Policy cost is based on factors such as your healthcare specialization, your level of cyber risk, the type and amount of sensitive data you store, and your coverage limits.
Every healthcare practice stores the personal health information (PHI) of patients, including medical records, test results, and medical bills. The federal Health Information Portability and Accountability Act (HIPAA) was enacted in part to help keep patient records and other personally identifiable information confidential.
Any violation of HIPAA, such as a data breach, can result in significant fines and penalties – regardless of whether a healthcare organization was responsible for the breach.
The Health Information Technology for Economic and Clinical Health Act (HITECH), enacted in 2009 to promote adoption of electronic health records among providers, further strengthened the penalties for HIPAA violations. Today, a single violation can result in fines up to $50,000, to a maximum of $1.5 million per year.
The healthcare industry is a frequent target for cybercrime like data breaches and ransomware attacks, and recovery can be financially devastating for a business. Even an accidental breach like a software malfunction or a lost laptop could result in substantial expenses.
That’s why cyber liability insurance is an important part of a healthcare business’s risk management strategy. It helps pay many of the costs related to a cyber incident, such as identifying and correcting cybersecurity flaws that led to a breach, payment of cyber extortion demands, and any resulting HIPAA fines.
There are two kinds of cyber liability insurance coverage to protect your business from cyber threats: first-party and third-party.
Cyber liability insurance can cover expenses related to a patient data breach at a doctor's office or other healthcare business that exposes PHI. This policy can pay to notify your clients about the breach and also cover fines. It can pay data breach response expenses such as:
If your healthcare business is responsible for the security of client records at another company, you could be held liable if the system is breached. For example, you face additional risks if you work as a consultant and recommend software to other businesses.
When a client blames you for failing to prevent a data breach, third-party cyber liability coverage helps pay for:
While cyber liability insurance shields against cyberattacks and data breaches, your business faces many other risks, too. Healthcare professionals should also consider:
General liability insurance: This policy can pay legal expenses related to patient property damage and injuries, along with advertising injuries such as slander and libel.
Business owner’s policy: A BOP bundles general liability coverage with commercial property insurance, often at a lower rate than if the policies were purchased separately.
Workers’ compensation insurance: Most states require this coverage for healthcare businesses with employees. It helps cover medical costs and disability benefits in the event of a work injury.
Professional liability insurance: This policy covers legal expenses when a healthcare professional is accused of negligence or an error. It's sometimes referred to as malpractice insurance.
Commercial auto insurance: Almost every state requires this coverage for business-owned vehicles. It helps pay for property damage and medical bills after an auto accident.
Are you ready to safeguard your healthcare business with cyber liability insurance or another type of business insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.