With the rapid shift to the digital era, the storage of patient documents and data files has shifted to the cloud. The quick adoption of technological advances has opened up a whole new level of risk for medical professionals. Although a relatively new insurance option, cyber liability insurance is becoming a popular and absolutely necessary risk-management tool used in the medical profession.
With multiple cyber attacks targeting medical professions and hospitals in the last few years, companies are now more than ever opting for cyber liability insurance. Some of the most recent cyber attacks were the Ransomware attack this year which held users’ files from ransom at a large number of hospitals and medical agencies. Hospitals and clinics were forced to turn away patients due to not having access to their patient’s records.
So What Is Cyber Liability Insurance?
Cyber liability insurance is used as a risk-management strategy to keep your business on a stable financial footing in the case of a significant security situation. Although it cannot prevent the cyber crime from occurring, it assures that your business, if targeted, is covered for financial shortfalls. Most business insurance policies won’t cover losses in the case of a cyber attack, making it important to understand the benefits of this type of policy to your business.
Deciding Which Cyber Insurance Provider Is Right For You
A key factor when deciding where you go to get cyber liability insurance is to assure they have policies suitable for your industry. Competent insurance companies, such as Professional Essentials, offer cyber liability insurance based on the specific requirements of medical professionals. Before discussing cyber insurance options, make sure you do your research and understand what it is you need in your policy.
What Is Covered By Good Cyber Insurance Policies?
Cyber insurance policies tend to vary in the benefits they provide depending on which provider you choose. To give you a brief idea, here are some of the areas that most good cyber insurance policies cover you for.
First Party Losses
- Financial losses incurred as a result of a cyber attack
- The cost of recovering or replacing your records
- Costs to cover extortion demands and prevention of future threats
Third Party Losses
- The legal costs of defending claims
- Legal expenses and fines from investigation by a government regulator
- The costs of copyright infringement and defamation claims
- The costs associated with managing a crisis caused by cyber hackers
- Costs associated with notifying customers of a security breach
What May Not Be Covered?
You can usually get cover for most aspects relating to lowering your risk online. However, generally policies won’t include cover for a few specific area:
- Criminals stealing money from you through the internet
- Damages caused to computer hardware
- Cyber attacks based on facts which you were aware
- Any criminal actions that have been committed by you or your business
Why Is It So Vital?
Cyber attacks are becoming more frequent, with cyber hackers targeting industries that can’t operate without access to key data. The costs accruing from a cyber attack is substantial and can spell the end of a business. The medical profession is one that relies on quick and easy access to patient information and usually cannot operate without it.
You need to assure that you have the appropriate level of insurance suitable for your business. The best way to guarantee you have the right cover is to go through brokers who have experience in your industry. You don’t want to be paying for areas that have no impact on your business however, you also don’t want unexpected costs occurring in the event of a cyber attack. Speaking to a qualified broker assures you can find the right cyber liability insurance for your business.