Cyber Liability for Medical Organizations

The business operations of your organization pose unique risks. Today, one of the biggest exposures for the medical community is cyber liability. A cyber liability policy through McLaughlin & Sons, Inc. can help mitigate these costs.

According to a 2014 Ponemon Institute study, the average annual cost of data breaches for healthcare organizations is $986,948. The cyber limits on your existing PL policy may not be adequate; you probably need additional limits. An enhanced cyber policy with limits of $1M can be had for as low as $6,244.

To receive a free and quick cyber liability quote indication, take two minutes to fill out the Fax Back Form (.doc format) and and return to us via fax at (309) 685-3389, e-mail to James, or give us a call at (309) 685-1010 or (800) 798-1010.

What Is Covered On A Cyber Liability Policy?

Primary Cyber Liability Coverages:

  1. Privacy Notification And Crisis Management Expense — Coverage for costs associated with a data breach:
    1. Forensic Investigation — Investigate the breach
    2. Legal Expenses — Determine the necessary response
    3. Call Center — For patients to have their concerns addressed
    4. Notification Of Affected Individuals — Draft and mail notifications
    5. Credit Monitoring — One year for affected individuals
    6. PR Firm — Aid in responding to fallout from the breach
  2. Regulatory Defense And Penalties
    1. Attorney Fees — Legal costs for dealing with regulators
    2. Payment for Regulatory Fines and Penalties
  3. Information Security And Privacy Liability — Liability For Damages From:
    1. Loss, theft, or unauthorized disclosure of Personally Identifiable Information (PII) and Protected Health Information (PHI)
    2. Transmission of malicious code or attack to a third party’s computer
    3. Failure to timely disclose a data breach
    4. Failure of insured to comply with own privacy policy
    5. Failure to take necessary actions to prevent identity theft
    6. Defense costs associated with all of the above items

Other coverages include:

  1. Website Media Content Liability — Permissions, copyright, and trademark violations — Slander or libelous content
  2. Business Interruption — Income Loss and Extra Expense costs
  3. Data Assets — Cost of restoring data lost in attack
  4. Cyber Extortion — Money to respond to credible extortion threats
  5. PCI Fines and Penalties — Costs associated with a Merchant Services Agreement breach

Coverages may vary by insurance company and the specific policy forms used.

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