Beazley in Medscape

Key Reasons to Consider Buying Cyber Insurance

By Michael J. Sacopulos, JD

Hackers Are After Your Data

Technology, specifically computer software, has been an overall boon to medical practices, making everything from recording a patient’s history to billing insurance companies and coordinating care with other physicians faster and easier. But as recent news stories remind us, the number of serious data breaches is rising, with hackers finding their way into the private files of corporations and governments.
But it’s not just the “big fish” who are vulnerable to data intrusions: Your practice could be at risk, too.

When shopping around, forget about price for the moment and consider the reputation of the company. “Your practice should ensure that its insurer is long-standing in the cyber market and has helped similarly situated insureds through complex privacy breaches,” recommends Bob Wice of Beazley, the largest provider of cyber security insurance to hospitals, which has dealt with more than 1500 data breaches to date.

Practices experiencing a breach often offer credit monitoring to affected patients. This is done both to mitigate future claims and to reassure patients. But Bob Wice of Beazley notes that some cyber policies have questionable terms, “such as only covering credit monitoring when the insurer is ‘legally required’ to do so—which effectively equates to credit monitoring never being covered.” This exclusion underscores the need to carefully review a prospective policy.

Read the full article here.