The Ultimate Guide to Cyber Insurance for the Healthcare Industry

The healthcare industry is a prime target for cybercriminals, with statistics revealing that 30% of all major data breaches take place in hospitals. The financial impact of these breaches on the healthcare industry is staggering, amounting to more than $6.2 billion. Worryingly, approximately 20% of healthcare businesses are anticipated to be affected by a data breach at some point. Third-party contractors are responsible for an astonishing 41% of healthcare data breaches, while malicious insiders account for 13%. 

In light of these alarming statistics, healthcare businesses are increasingly turning to cyber insurance. This type of coverage provides a financial safety net in the event of data loss or breach, with reimbursements for associated costs such as legal fees and system repairs. Additionally, it can provide peace of mind that your business is protected against potentially catastrophic losses caused by cybercrime.

We Have the Best Cyber Insurance Policies for Hospitals, Clinics and Healthcare Businesses

At Brighton Financial and Insurance Services (BFIS), we understand the unique needs of healthcare businesses when it comes to cyber insurance. That’s why we have developed a range of comprehensive policies that are tailored to suit your specific requirements. Our experts can help you find the ideal coverage for your business, no matter how big or small it is.

As an independent insurance agency, we have access to a wide range of leading insurers. We keep an eye on the market to ensure that our clients always have access to competitively priced coverage from the best providers. Our policies are designed to give you complete peace of mind and maximum protection against potential cyber threats.

Fill out our online form today and one of our experienced insurance professionals will be in touch to discuss the best options for your healthcare business. We look forward to hearing from you.

Common Cyber Attack Threats to Healthcare Businesses

Healthcare businesses are particularly vulnerable to cyber attacks due to the sensitive nature of their data, such as patient records and financial information. Some of the most common threats include:

• Phishing attacks – Fraudsters send messages that appear to be from legitimate sources in order to steal confidential data or spread malicious software. One of the most common types is email phishing.
• Malware – Malicious software, such as spyware and ransomware, can be used to steal data or take control of a system.
• SQL injection – Attackers use Structured Query Language (SQL) to inject malicious code into a website’s database in order to gain access to confidential data.
• Social engineering – A form of manipulation in which attackers try to convince people to disclose confidential information, such as passwords and account numbers.
• Denial of service attacks – Attackers use bots or malware programs in an attempt to overwhelm networks with traffic and take them offline.
• Data breaches – Attackers use various techniques to gain unauthorized access to data, such as exploiting vulnerable systems or using stolen credentials.
• Insider threats – Current and former employees with privileged access can misuse their authority or take confidential data without authorization.
• Distributed denial of service attacks – Hackers use botnets or malware to launch a large-scale attack on networks, resulting in extended downtime.

It is important to be aware of the potential risks and take steps to protect your healthcare business from cyber attacks. Our team of experienced security professionals can help you develop an effective cybersecurity strategy that meets the needs of your organization.

Understanding Healthcare Cyber Security Insurance

Also known as cyber liability insurance or data security insurance, healthcare cyber security insurance provides financial protection from the damages associated with a cybersecurity incident. It can cover costs such as legal fees, forensic investigations, notification expenses, system repairs, and credit monitoring.

Cyber insurance also helps protect against third-party liability claims, such as those related to data breach notifications and regulatory investigations.

Healthcare organizations should consider cyber security insurance in order to help reduce the financial impact of a breach or attack. However, it is important to remember that cyber insurance is not a substitute for an effective cybersecurity strategy.

Who Needs Healthcare Cybersecurity Insurance?

Many organizations in the healthcare industry are at risk of cyber attacks and should have some form of cybersecurity insurance, including:

• Hospitals
• Clinics
• Medical Practices
• Nursing Homes
• Assisted Living Facilities
• Home Health Care Agencies
• Physician Offices
• Mental Health Providers
• Dental Practices
• Ambulatory Care Facilities
• Pharmacies
• Laboratories
• Insurers
• Medical Device Manufacturers
• Health IT Companies.

Other organizations, such as suppliers and third-party vendors, should also be aware of the need for cyber security insurance in order to protect their networks and data.

Types of Healthcare Cybersecurity Insurance

Healthcare organizations can choose from two different types of cyber insurance policies: First-Party and Third-Party Healthcare Cyber Liability Coverage. These policies help protect organizations from financial losses caused by cyber-related incidents. It is important for healthcare organizations to understand the differences between these policies in order to select the right one for their needs.

First-Party Healthcare Cyber Liability Coverage

First-Party coverage focuses on addressing the direct costs and losses incurred by the healthcare organization itself as a result of a data breach or cyber incident. This type of coverage typically includes:

• Business interruption loss: Provides coverage for lost revenue resulting from business disruption caused by a cyber incident.
• Data restoration: Covers expenses related to restoring or recreating lost or damaged data due to a cyber attack.
• Breach investigation and remediation: Pays for the costs of investigating the cause of the breach and implementing necessary security measures to prevent future incidents.
• Notification expenses: Covers the costs associated with informing affected individuals or partners about the data breach, in accordance with legal requirements.
• Credit monitoring services: Pays for credit monitoring and identity theft protection services offered to those impacted by a data breach.
• Public relations and crisis management: Covers the expenses involved in hiring public relations and crisis management experts to help rebuild the organization's reputation following a breach.
• Extortion payments: Provides coverage for ransom demands in cases of ransomware attacks or other extortion-related cyber incidents.
  

Third-Party Healthcare Cyber Liability Coverage

Third-Party coverage, on the other hand, is focused on protecting the healthcare organization from liabilities arising from data breaches or cyber incidents caused by their third-party vendors or service providers. This type of coverage typically includes:

• Legal defense costs: Covers the expenses associated with legal representation and defense against claims arising from a third-party data breach or cyber incident.
• Regulatory fines and penalties: Provides coverage for fines and penalties imposed by regulatory authorities due to non-compliance with data protection laws as a result of third-party breaches.
• Liability arising from privacy breaches: Covers claims made against the healthcare organization for invasion of privacy, breach of confidentiality, or violation of data protection laws due to a third-party cyber incident.

In summary, First-Party Healthcare Cyber Liability Coverage is designed to protect healthcare organizations from the direct costs and losses they may experience as a result of a cyber incident, while Third-Party Healthcare Cyber Liability Coverage provides protection from claims made by a third party, such as customers or patients, for damages resulting from a data breach.

How Much Does Healthcare Cyber Liability Insurance Cost?

The cost of Healthcare Cyber Liability insurance will depend on several factors, such as the type and size of the healthcare organization. Generally speaking, coverage is priced based on the amount of coverage selected and the risk profile of the insured. The more vulnerable an organization is to cyber threats, the higher their premiums are likely to be. However, most healthcare organizations may consider Healthcare Cyber Liability insurance to be a necessary expense and cost-effective investment in the long run.

Additionally, Healthcare Cyber Liability insurance can also help healthcare organizations reduce their risk of data breaches by providing guidance on best practices for cyber security to ensure that their information is protected. This type of guidance can help healthcare organizations prevent a data breach before it occurs, and this can help minimize the costs associated with a potential cyber incident.

Quick Tips to Lower Your Medical Practice's Cyber Liability Insurance Costs

• Implement and review cyber security best practices regularly to ensure your data is secure.
• Make sure all of your employees are trained in cyber security protocols.
• Utilize up-to-date technology solutions to enhance your organization’s cyber defenses.
• Regularly assess and mitigate any identified cybersecurity vulnerabilities.
• Invest in cyber liability insurance to provide additional protection from costly data breaches.

Get a Healthcare Cyber Liability Insurance Quote

Brighton Financial and Insurance Services (BFIS) is experienced in helping hospitals, medical centers, and other healthcare organizations find the most cost-effective healthcare cyber liability insurance coverage for their needs. Our dedicated team of experts is here to help you understand the complexities of this type of insurance policy and can provide you with a tailored quote within 24 hours. Contact us today for more information about how we can help your organization protect itself from costly cyber incidents.