Cyber Insurance? What kind of Insurance Policy is that?
September 11, 2014
Due to the increase of medical transactions stored online and in the cloud, cyber intrusions will only increase.
Cyber insurance, also known as privacy and network security insurance, can help cover the costs incurred if your computer system is compromised, or after a data breach which can include a HIPAA breach. Keep in mind breach notification is legally mandated in 47 states and regulations vary state by state to be sure you are aware of your states laws. This is a fairly new market, therefore, be sure the underwriter you chose has experience and understanding on the subject of Cyber Losses.
Cyber Policies like other insurance coverage’s can be tailored to fit your practice; it is not one-size fits all. Depending on the policy selected it can cover, fines, penalties and litigation expenses as well as investigation costs (to determine the extent and nature), as well as security breach remediation and notification expenses.
Some policies will include risk management support to prevent costly damages. Coverage is offered as a standalone policy or as a part of other management liability coverage’s, it can include first party as well as third party involvement.