The Doctors Insurance Agency continues to work with telemedicine organizations on their medical professional liability insurance, it becomes very clear to us that the telemedicine professional liability policies must include at least a sub limit to protect the organization against a breach of data; they should purchase a cyber liability insurance policy to protect against hackers, people who are specifically deliberately and successfully targeting healthcare organizations  -  none more so than telemedicine against loss of data in the first party liability that comes with that loss.

We commonly hear about cyber security attacks on large national companies, however, smaller main stream companies are also a target.  And healthcare information (payment card information and personal identity information) is among the most desirable and profitable targets of cyber criminals and hackers.  Small and mid-sized businesses often lack access to cyber security expertise, thereby, making them easier targets.  Here’s an example of an attack that occurred right in our own backyard as described in The Mercury News on August 5,2016 by Richard Halstead and Marin Independent Journal click here

It reminds me that we need to remind our physicians of the valuable data they hold and that they should work with their insurance carriers that provide Cyber Insurance before an event takes place by helping provide them with advice and risk management tools to help secure their systems and ultimately provide them with coverage in the event of a data breach.  
 
 

Our Medical Malpractice Insurance Carrier/Partner, - The Doctors’ Company published on their website:

Cybersecurity: Mitigate Against Hacking and Data Breach Risks

The  website reports that Cybercrime costs the U.S. economy billions of dollars each year and causes organizations to devote substantial time and resources to keeping their information secure.   This is even more important for healthcare organizations, the most frequently attacked form of business.  The most common statistic that we see reported is that  healthcare data breaches cost companies an average of $316 per record—the highest of any industry.* The Doctors Company's expert resources can help protect healthcare organizations and physician practices.

Administrative Defense Insurance

This limit (or sub limit) of insurance protects you in the event you are named in a claim against you for some disciplinary event.
The Doctors Company medical malpractice policy comes with a $25,000 expense limit to respond in the event you  are named in an administrative claim. Administrative claims are those incidents which are not medical malpractice related and still requires defense in order to protect your good name, your reputation and  your assets.

These proceedings cost time, energy and  money; and the success of the defense depends upon access to professionals:  accountants, auditors and attorneys.  Coverage of $ 25,000 means that you can respond to medical board actions, disciplinary actions allegations of Medicare fraud and abuse professionally and with confidence.

Medical Groups, individual providers and facilities, institutions, surgery centers and medical foundations across the country are being affected by these attacks  of electronic medical records. The dangerous and costly data breaches are becoming more and more common. There breaches that affect only individuals and there are those that affect millions and millions of records.