Data Breach Insurance
On just about any chosen day, you can turn on the news, open a newspaper or visit a website and find a story about a medical office that is facing the devastation of a data breach. These incidents occur due to the mistreatment of confidential information and records, such as improperly stored records, insufficient security policies and the improper use of portable storage devices. A Data Breach Insurance policy tailored to your facility’s specific needs is required to ensure that you are protected, should such an oversight occur.
Errors That Lead To Data Breach
A breach in data security can be caused by a number of different events. For example, one of your employees misplaces a patient file. The file contains the patient’s name, address, social security number and other sensitive information. It is the responsibility of your medical office to notify the patient of the lost file and cover the expense of credit monitoring.
Another example is a new employee mistakenly tosses medical records that contain social security numbers, dates of birth and medical histories of several patients into the recycling bin. The records reveal information regarding medication and treatments. If the records are discovered by someone searching through the recycling bin, your medical facility could face substantial government fines and without the proper Cyber Liability Insurance, Your facility will have to shoulder the burdon alone.
Employee errors are not the only cause of data breaches. Often times, the breach is related to criminal or malicious activity. For example, your medical office is hacked by a local tech savvy teen that helps himself to your patients’ social security number and bank account details. He then turns around and sells that information online so the information can be used to create false identities that are used by criminals.
Your medical practice will be responsible for notifying the affected patients and providing credit monitoring services. Potential lawsuits could arise, leading to even more expenses in legal fees and damages. The total amount that you end up paying for such devious activity could be hundreds of thousands of dollars.
Your patients are not the only ones at risk. A hacker could introduce a virus into your system remotely that steals your company’s online banking information and wires funds to a foreign account. The virus could shut down your processing systems and cause even further damage.
In most cases, the data breach is caused by an accident. Regardless, it is the responsibility of the medical office to become aware of such risks and take the necessary precautions, which includes the investment in adequate coverage.
What Does Cyber Liability Insurance Cover?
Typically, a HIPAA Insurance policy will cover the cost to respond to an incident, including:
- Forensic analysis to determine the cause and extent of the data breach
- Public relations and crisis communications
- Notification of affected parties
- Credit monitoring services for those affected by the breach
- The rebuilding of your medical facility’s reputation
- Legal representation and advice
- Settlements and judgments in legal cases brought against your facility
Certain regulations require a medical care facility to reveal an event of improper use and exposure of protected information to those that are affected by the data breach. Business associates are also covered by such rules.
Data Breach Insurance may also include coverage for services that aids patients in dealing with the aftermath of the incident, such as identity theft insurance or identity theft monitoring, for example. Your agent at Putnam Record Insurance Agency will be able to provide you with details regarding the services that are available to victims of a data breach in your medical office.
In addition, your HIPAA Insurance policy will cover the expenses of consulting with an attorney as well as defense costs should any legal action be taken against you or your medical practice. You should also consider investing in third-party liability coverage just in case the affected individuals become victims of identity theft and decide to take legal action against your health care organization.
What Does Cyber Liability Insurance Cover?
Without proper coverage in place, your medical office could face a mounting pile of claims and fees. At Putnam Record Insurance Agency, we have a unique approach to providing you with the most comprehensive New York data breach policies at the most competitive prices. We offer a broad portfolio of data breach coverage, as well as other professional liability policies that are customized to meet your specific needs. We can offer you the expertise and experience that you need and expect so you can successfully protect your medical practice and the privacy of your patients.
There is no need to delay any longer because the peace of mind that you deserve is just a few clicks away. All you have to do is complete and submit the simple quote form to be contacted by one of our friendly and knowledgeable agents. We understand that you have put a great deal of time and effort into building a successful medical practice where you patients can get the treatment they need to stay healthy. That is why we put such great effort into making sure you have the HIPAA Insurance you need to keep your business safe and secure.