Protect yourself from Data Theft Liability

December 22, 2015

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.

Cyber Liability “Data Breach” $ 50,000

In addition to the Administrative protection through our Mediguard, The Doctors’ Company includes up to $ 50,000 to respond to Data Breach and Hacks, and theft. The cyber liability risks covered under the medical endorsements are as follows: Information security and privacy , media representation, website publication, assistance with defense and penalties for HIPAA violations are included in this 50,000 and is the expensive cost of first party notification.

Reasonable Premiums to add $ 1Million

These coverages may not be enough to fully respond to these common risks; ( some defense is a good start). The Doctors’ Insurance Agency, The Doctors’ Company and Beazley Data Breach and Liability Insurance is working together to offer higher limits (1 Million) for both of these endorsements so that our practitioners have enough insurance to respond to the real threat posed against their practice profitability and their reputations.

According to the Daily Beast: (online Medical Industry Newsletter)

Cyber Crime is on the rise (since the passage of the Affordable Health Care Act)

Thanks to the Recovery Act’s push to digitize health records, sensitive and protected data is within the reach of most thieves.

Cyber criminals are coming after your medical data. Six years after the American Recovery and Reinvestment Act of 2009 opened the floodgates to digitized medical records, so-called “protected health information” is now the most precious commodity allegedly —fetching up to ten times the price of a stolen credit card number on the “dark Web.”

A report from International Data Corporation states that one third to one fourth of all consumers will have their health data compromised next year due to weak cybersecurity. The Daily Beast also reports that criminal attacks on data are up over 100 % since the recovery act mandated electronic health records.

…and, it goes on to report that 81 percent of medical organizations have been targeted by a cyber attack or malicious software—

Organized criminal networks and innovative technically savvy solo hackers are feasting on the relatively easy and sometimes amateur storage of protected health and personal data on physician in healthcare organization websites $ 4.5 Million of data breach cost

An example of data breach a surgeon posted patient identifications 15 claims paid for $150,000 each. This is a story of a plastic surgeon opposed to before and after photos of several patients on the surgeons website website code was written in could correctly accidentally exposing the patient's personal information legal settlements per patient have exceeded 150,000 with 15 claims filed and 15 more expected the costs will total more than 4 1/2 million.

Mediguard Plus increases your insurance up to $ 1 Million

For on average of $1000-$3000 per year physicians and small medical groups can increase this administrative and cyber data protection and regulatory response coverage to $1 million. The Doctors Company first innovated this coverage and since then has developed a mature network of attorneys, claims representatives, and a specialty company that is expert at responding to criminal data theft as well as the administrative and disciplinary problems that strike many of our physicians.

Any business handling customer data will, sooner or later, be confronted with the challenge of a data breach.

To address this risk, Beazley pioneered in 2009 the concept of data breach insurance that focuses first and foremost on response. To date we have helped more than 2,000 clients manage data breaches swiftly and successfully.

Data breach is a prototypical 21st century risk - a rapidly evolving threat that exploits the interconnected of our world.

These policies are written closely with The Doctors Company and the billing can be included in your quarterly medical malpractice statement. The Doctor’s Insurance Agency working with our underwriting team and our specialty Beasley Data Breach Risk Management and Prevention Team is ready to work with you to provide you important details and facts to justify and support this purchase and we think the extra $1 million section is mandatory for every private physicians group.