Cyber attacks are becoming increasingly more common in the healthcare industry.
Hackers target healthcare practices and facilities because they store and process
personal, health, and credit card information of their patients. This information is
considered private personal information (PPI) or protected health information (PHI).
When PPI or PHI is released or stolen, the cost to recover from the incident is extremely
costly. Steps must be taken to notify all the patients that were potentially affected, public
relations teams must devise a plan on how to report the incident, cyber security
professionals need to be hired to repair the computer system and recover any
information, and much more.

 

Sometimes the costs continue for years after the incident
occurs. For example, if credit card information is released, the company may offer to
pay for a credit tracker subscription for all people affected for years after the incident.
The amount of revenue lost when cyber attacks occur can also be astronomical. Every
minute the system is down could result in a lost appointment or potential new patient. In
some instances, appointments may not be continued because physicians are unable to
access patient files. In large healthcare facilities, this could result in millions of dollars of
lost revenue.

Below are some of the important coverages to look for in a cyber policy.

Crisis Hotlines & Risk Management

Cyber/privacy liability insurance carriers provide several different risk management
resources to help their insureds. Some insurance companies have an app or hotlines
that can be used to give insureds 24/7 access to their risk management professionals.
This is an extremely valuable resource because an experienced professional will guide
you through responding to a cyber attack. A good cyber insurance carrier’s risk
management resources will be there to support you and guide you through any cyber
security questions you may have.

Funds Transfer Fraud Coverage

Some cyber liability insurance policies offer coverage for Funds Transfer Fraud. This is
an important coverage to have on your cyber insurance policy because events where
this coverage can be triggered are becoming more and more common. Funds Transfer
Fraud covers events where someone from your company transfers money into a
fraudulent bank account. This happens more frequently than you might think because of
how convincing cyber criminals can be nowadays. Cyber criminals can track the
companies that you make repeated payments to, and then create fake, very convincing,
emails to mimic the company with new payment directions. Many people would assume
the payment directions are legitimate, and then they could lose thousands of dollars.

Ransomware Coverage

Ransomware is a type of malware that prevents users from accessing their computer
files, networks, or systems, and demands a ransom for their return. It is important to
have this coverage in your cyber insurance policy because ransomware attacks can be
very expensive to recover from and manage. When the attacker has access to your files
they may also steal information from patients in your computer system. The release of
patient information will introduce other potential issues that your insurance carrier can
help you manage such as, public relations assistance, notifications to patients of the
breach, providing credit checks for patients whose credit card information was released,
and more.

Invoice Manipulation Coverage

Invoice manipulation coverage can be added onto most cyber insurance policies. The
number of invoice manipulation attacks has been increasing exponentially each year as
technology advances. Cyber attackers are able to create fraudulent invoices and
payment instructions to send to your company’s clients. The client then pays the cyber
attackers instead of your company.
Technology is advancing rapidly, increasing the risk of cyber attacks on businesses.
InsureGen Brokers can help you learn about the many benefits of purchasing a cyber
liability insurance policy.

To learn more about cyber insurance visit our website here.