Q: Why do healthcare businesses need Cyber Liability Insurance?
Did you know that patient records are worth ten times more than stolen credit card information? That's right. Though you hear news stories about data breaches at retailers, the truth is that the data stored on your healthcare business's network is significantly more valuable.
One way medical professionals can be prepared for a data breach is to make sure their business has Cyber Liability Insurance, which can pay for cleanup, repairs, and damage control after a breach. Cyber Liability Insurance (sometimes called Data Breach Insurance) can pay for…
- Contacting patients affected by the breach.
- Forensic investigations to determine how data was lost.
- Crisis management.
- Public relations consultations to help your business limit the damage to its reputation.
- Credit monitoring for patients.
It can take a while for a data breach to be discovered, even months or a year later. Often, you'll only realize it after a patient or bank calls you with a complaint. The cost of hiring experts to patch your network, find your leaks, and make sure no more data is being in lost can get extremely expensive. You may even be fined for the data breach as you have legal obligations to protect patient data.
You've undoubtedly heard about HIPAA and HITECH — the two laws that hold you accountable for data breaches and confidentiality breaches of patient records. The fines HIPAA and HITECH levy on healthcare practices can range from tens of thousands of dollars to millions of dollars.
Some Cyber Liability Insurance policies will pay for a HIPAA fine, but many won't. See our article, "Cyber Insurance and HIPAA Fines: Making Sure You're Covered" or talk with an insurance agent to learn more about which healthcare Cyber Insurance policy makes sense for your business.