Cyber-attacks. The news has been filled with reports of them.
Meat processing plants.
And, closer to home, to the healthcare industry, that is, Scripps Health and, as learned the first week of June 2021, the UF Health Central Florida cyber-attack.
How prepared are you if, despite the prophylactic precautions taken by your in-house team, taken by your outside coding and billing provider, and by your EHR vendor, your defenses are breached?
In particular, how sure are you that you’re insured, as in cyber insured, in regard to the damages cause by the attack?
In general terms, cyber insurance covers costs associated with cyber-attacks and data breaches.
As you might expect, though, the devil’s in the details when it comes to insurance coverage in general, and nowhere is this more true than in connection with cyber coverage.
Varying policies and modifications to them by way of endorsement, at varying premium levels, can be had to address cyber-attack damages. To name but a few: notification of patients/customers, regulatory defense expenses, the payment of fines, the cost of repairing computer systems and of recovering lost data, crisis management expenses, the cost of forensic investigations, and even business interruption.
It’s essential you understand that, unfortunately, relying on your insurance broker alone won’t always solve your cyber insurance preparedness. Cyber insurance dovetails with your other coverages; particular policy language, both in proposed cyber insurance policies and in your existing coverages are often inter-dependent. No two policies are the same and price shopping is an ineffective strategy.
Comment or contact me if you would like to discuss this post.
Mark F. Weiss