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Cyber Liability Insurance

Cyber Liability Insurance

Professional liability insurance

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What Is Cyber Liability Insurance and What Does It Cover?


When most practitioners think about cyber liability risk in their medical practice, they think about EMRs getting hacked.  And, while most EMRs have some sort of cyber liability coverage built into their platforms, it is imperative that every practice also purchase stand alone cyber liability insurance to cover their additional cyber liability risks. 


Most practices also have the following vulerabilities that they should get coverage for, including:

  • Website (which may provide scheduling, bill payment, and/or messaging that contains private patient information)
  • Electronic files the practice may store outside of the EMR (eg, databases that hold your patients' contact information)
  • Portable electronic devices in your practice, like iPads or cell phones, used for patient communication that may get misplaced or stolen. 


Cyber liability insurance covers:

  • Ransomware
  • Malware
  • Hacking and stealing of private patient information
  • Other forms of data breaches


It is especially important for medical practices to have this coverage in place because of the additional implications of HIPAA violations and the extensive fines that can accompany such breaches. 


What Are Some of the Expenses Associated with a Healthcare Data Breach?

HIPAA violation fines.  The most common HIPAA violations include:

  • Losing electronic devices
  • Getting hacked
  • Using unencrypted technology to share PHI
  • Employees inappropriately accessing digital files


Costs to pay for ransomware


Costs to repair damage from malware


Money lost due to phishing/fraudulent instruction by a third party


Costs to notify patients if their private information was compromised


Costs to provide credit monitoring for patients, if needed


Business interruption costs, if your practice has to close due to a cyber attack 

Wouldn't My Medical Malpractice Insurance Cover This?

Most medical malpractice insurance policies have sub-limits for limited cyber liability coverage.  That said, they are usually very low and wouldn't adequately handle a significant data breach. 


Most cyber liability coverage that is included in medical malpractice insurance policies typically has limits of $25,000-$100,000 aggregate.  Stand alone cyber liability insurance policies typically have limits of $1 million per claim and $2 million aggregate.   


Are you unsure what your cyber liability insurance needs are or if your current med mal insurance policy would cover you adequately?  We'd be happy to discuss your unique situation, and needs, and/or to give you a free quote for cyber liability insurance coverage. 


Click here to get more information.

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