Cyber Insurance

What is Cyber Insurance?

Cybersecurity insurance, also known as cyber liability insurance, is a policy that helps organizations cover financial losses and liabilities resulting from cyber incidents such as data breaches, cyberattacks, ransomware, and other digital threats. These policies typically cover costs related to legal fees, data recovery, business interruption, customer notification, regulatory fines, and reputation management.

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Healthcare Need for Cyber Insurance

Healthcare organizations are valuable targets for cybercriminals as healthcare has moved to cloud based EHRs and store sensitive patient data known as Protected Health Information (PHI) including any identifiable health insurance, health insurance plan data, and demographic data such as names, addresses, date of birth, social security and other identifiers.

Cyber Insurance Coverage By Our Offerings

A data breach can severely damage a healthcare organization’s reputation and trust with their patients. Cyberattacks could lock out the practice from their EHRs leading to a disruption of operations with financial losses and potential harm to patients.

 Data Breach Insurance may be tailored to provide protections such as:

  • Incident Response Costs: Provides forensic investigation, public relations, crisis management and potential legal fees.
  • Business Interruption Loss: Protects against income lost due to a cyberattack that prevents the organization from operating normally.
  • Data Restoration and Recovery: Covers costs of restoring systems and data after a cyberattack.
  • Network/Data Extortion: Covers potential payments made to ransom demands, depending on policy terms.
  • Liability for Unauthorized Access: Covers damages and legal fees resulting from claims related to unauthorized access to systems or data.

How Much is Cyber Insurance?

Premiums will change based on the level of insurance limits purchased and the coverage options selected. Other factors include but are not limited to the size/type of practice, amount of patient records, cybersecurity measures, claims history, and technology used. Cyber Insurance underwriting has increased the scrutiny of the IT infrastructure including penetration testing, vulnerability scans and security assessments. The underwriters use these tests to help identify weaknesses in networks, systems and applications that could be exploited by cyber attackers.