Cyber Liability Insurance for Florida Healthcare Providers

Cyber Liability Insurance for Florida Healthcare Providers

Your cyber liability risks are growing so rapidly that many predict they are now greater than your malpractice risk.

Cyber liability insurance for Florida healthcare providers is a growing necessity. Here are three pertinent facts that are concerning:

  • The healthcare industry now suffers 51 percent of all data breaches.
  • The average cost of dealing with a breach was $2.4 million in the last two years.
  • The majority of cyber issues occur in practices with less than 100 employees.

What is Cyber Liability Insurance?

If a doctor uses e-mail, has networked PCs, a website, or stores private patient information on their computer systems or in paper files, then they need cyber insurance. Cyber Insurance was created as a result of the expansion of liabilities against companies for breach of private information, and insurance for digital assets.

You may have firewalls, virus protection, anti-spam systems, and prudent procedures to protect passwords and prevent employees from downloading dangerous material, but these measures are not foolproof.

 All it takes is just one stolen laptop, hacker, virus, snoopy employee or even one lost patient’s paper file to create an enormous monetary losses and reputational penalties. Consider just a few examples and the ramifications:

Technology E&O – “Internet Content”
A health system accidentally posted the medical records of thousands of patients on the Internet. A class action suit was filed for alleged emotional distress of the affected patients.
Loss:
The class action seeks damages in excess of $10 million and the federal government has notified the system to prepare for an investigation under HIPAA.

Cyber Liability – “Personal Records Disclosure”
A woman purchased a used computer from a pharmacy. The computer still contained the prescription records, including names, addresses, social security numbers, and medication lists of pharmacy customers.
Loss:
The cost of notifying affected parties per state law totaled nearly $110,000. Two lawsuits have been filed: one alleges damages in excess of $200,000 from a party who claims she lost her job as a result of the disclosure; the second alleges that the plaintiff’s identity was stolen, and that costs of correction and emotional distress will exceed $100,000. A HIPAA investigation is also underway.

Cyber Liability – “Data Security”
A part-time hospital employee gained unauthorized access to confidential electronic patient records and discussed with co-workers an individual’s HIV status. The individual sued the hospital for lack of adequate IT security measures in protecting digital patient records.
Loss:
The hospital was held liable for $250,000. An additional $85,000 was spent on defense

What is the value of the data and what would it cost to reconstruct the data in the event of a hacker attack or something of that nature? You should consider a Cyber policy today!

We are concerned that your exposure may have outpaced your insurance coverage. Your malpractice insurance policy has limited coverage and low limits for cyber issues so it is time to address these issues if you are ready to do so.

Please contact us at 800.966.2120 to discuss your options for cyber liability insurance for Florida healthcare providers. The cost of coverage is currently affordable and we recommend staying ahead of these problems.

Cyber Liability News

SONY, TARGET AND YOUR MEDICAL PRACTICE

What do Sony, Target and your medical practice have in common? Much more than you may think! Last December we all watched as Target announced that they had fallen victim to a cyber-attack and a vast amount of financial and personal data from customers was stolen. To date, Target has been fighting various lawsuits… read more

Cyber Breach: The Dark Side of Technology

Over the past year, we have seen a number of high-profile cases involving privacy breaches that included personal health information (AvMed), credit-card data (Target), and Social Security numbers, as well as other important personal information. Cyber, or privacy, breaches are becoming a daily occurrence and quickly rising to the top of… read more

CYBER LIABILITY 101

Cyber liability is the risk posed by conducting business over the Internet, over other networks, or using electronic storage technology, including laptops, phones and tablets. Exposures are generally classified as a “first-party” or a “third-party” cyber liability.  A “first-party” cyber liability occurs when… read more

Ponemon Institute Releases 2014 Cost of Data Breach: Global Analysis

Throughout the world, companies are finding that data breaches have become as common as a cold but far more expensive to treat. With the exception of Germany, companies had to spend more on their investigations, notification and response when their sensitive …. read more

Contact Us
  • First Name*
    0
  • Last Name*
    1
  • Email*
    2
  • Phone*
    3
  • Message*or other info
    4
  • * Required Feilds
    5
  • 6
services-2-banner1
banner2
The HIPAA Breach Notification Rule (45 CFR §§ 164.400-414) requires HIPAA covered entities and their business associates to provide notification following a breach of unsecured protected health information. Below is an infographic based on breach notifications in 2013 reported data: