The world has become more dependent on electronic data. We depend on it every day in running our business.
Health systems, hospitals, home care and home health agencies are alarmed by the increasing prevalence of Cyber crime. Confidential patient records — names, social security numbers, addresses, phone numbers, medical and financial information — are prize targets for Cyber criminals.
Cyber Criminals goal is to make money. The more comprehensive the stolen data, the higher its re-sale value.
Cyber Criminals look for soft targets, typically small to midsize businesses. Most businesses do not have the resources to hire full time cyber security personnel. In addition, many make the costly mistake of assuming that “Cloud Storage” providers will indemnify the firm in the event of a security breach. This is dead wrong!
The business that gathers the information is responsible for the protection of that information. In addition, health information has become more vulnerable as providers increase their use of cell phones with apps, laptops, and iPads. All are all moving targets that can be electronically burgled, or physically lost, or stolen.
49% of all data breaches are caused by malicious and criminal attacks.
This can take many different forms. Cyber Extortion is the encryption of data so that the owner/author is prevented from accessing it. The Cyber criminal demands payment to release the data back to you. Many times this is a volume strategy: to attack thousands of businesses, demanding relatively small sums from each target. In this situation, many small businesses will simply pay up, which can mean a big payday for a criminal targeting thousands of companies at a time.
Moreover, if your business falls victim to unauthorized data breach, you may be subject to fines and penalties under the Security and Privacy rules in HIPAA regulations at the Federal and/or State levels.
Let’s talk costs of a breach – $316 is the average cost per record in the Health Care industry.
Notification, Credit Monitoring, Forensics, Public relations and call center services — all will be a cost for the business for the breach.
Regulatory defense and penalties – hiring lawyers to defend your business
Liability settlements – If you are found liable the business is responsible for payment.
Cyber Liability Insurance is the only way to protect your business from the many forms of Data Breach attacks that can take place.
Not all Cyber Insurance coverage is the same. At Chamberlin & Reinheimer we work only with Insurance companies that specialize in Cyber coverage. In fact one of these companies insures 50% of the Federal Reserve Banks.
The minimum Premium is $1,000. Our aim is to provide coverage that is both affordable and realistic in covering the firm’s risk.
Cyber Insurance policies are NOT Personal Auto insurance. You need to work with an Insurance Broker who is well qualified to advise you on contract details.