Cyber Liability Insurance and Data Breach Liability Insurance

Cyber Liability Insurance protects your business with a combination of coverages that protect you from cyber security issues and data breaches. 

Coverage components include: Multimedia Liability; Security and Privacy Liability Coverage; Privacy Regulatory Defense and Penalties; System Failure Coverage, Dependent System Failure Coverage; PCI DSS Liability, Breach Event Costs, Cyber Extortion, and Cyber Crime.

A unique aspect of this Cyber Liability Insurance policy is that coverage can also be added to provide coverage for defense costs and civil fines and penalties related to regulatory actions alleging billing errors or EMTALA, HIPAA or STARK violations.  A sublimit can also be added to provide medical board defense coverage in the event of a medical board inquiry.   

Claim Examples:

Surgeon posts patient IDs, penalties could total $4.5 million

A plastic surgeon posted before and after photos of several patients on her website.  The website’s code was written incorrectly, accidentally exposing the patients’ personal information.  Legal settlements per patient have exceeded $150,000.  With 15 claims filed and 15 more expected, costs could total more than $4.5 million.

Price tag for stolen laptop and phone:  $150,000

An employee of a county health center had his laptop and mobile phone stolen from his car.  The devices were not password protected, and both contained personal health information of the center’s patients.  The total costs for this HIPAA violation could exceed $150,000.

Cyber hygiene is becoming more and more a part of medical  (and management)  malpractice insurance underwriting and risk management….(management malpractice = employment practices, directors & officers and cyber/network liability insurance) 

At this time, there is no Reduction in Premium with adoption of a Managed-Threat Response Security  because  there is no premium allocation to  the sub limit of cyber liability included in the most medical malpractice policies). ($50,000 per incident). 

Medical Malpractice carriers currently established premiums do not take into consideration Cyber Liability Coverage.  .

Many PIAA carriers  continue to include the cyber ‘sub limit’ at no additional premium ; limiting the ‘primary purpose of the policy’ to  defend doctors against any medical malpractice incidents. With continued data breach  and network threats to so many  healthcare organizations, (some of the cyber threats / interruptions are actually resulting in bodily injury claims as patient admissions and scheduling can result in {Delayed care or mis diagnosis -}

And, as telemedicine continues to expand the services of so many medical groups, it is likely that  cyber  and network security questions will  find their way into underwriting for medical malpractice. Many of our groups are applying for a higher limit of cyber liability insurance with a separate specialized carriers.

 It is easy to consider the  additional premium and limits specific to these policies. 

Our Cyber Liability Insurance specialist Kay Isola is available to provide you with an application for coverage or further information. Contact Kay at (800) 553-9293 X 101.


Data Breach & Privacy Liability Insurance