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.
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.
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.
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.