How a Comprehensive Cyber Liability Policy Can Save Your Medical Practice


Doctors and Small Medical Practices are Prime Targets for Cyber-Attacks

Medical practitioners face an arduous road of preparation before they can begin to practice their chosen specialties, and for good reason. Not only is a doctor responsible for his or her patient’s well-being, but they must also become competent business professionals, which includes handling sensitive information.

In providing such an individually-sensitive service to the public, the documents that doctors handle are sensitive, and plentiful. And with so much sensitive information on hand, doctors and small medical practices are prime targets for cyber-attacks.

Cyber-Attacks Have a Severe Impact on Businesses

Any practice that has a website, uses social media, or stores patient information is vulnerable for a cyber-attack.

According to Chubb insurance, “93% of small and midsize businesses that have experienced a cyber incident reported a severe impact to their business.” Almost all reported loss of money and saving. Thirty-one percent reported damage to their reputation leading to a loss of clients and nearly half reported an interruption in service that damaged their ability to operate.

Less Than 3% of Medical Practices Have Cyber Insurance

The big kicker? “In spite of those figures less than 3% have cyber insurance,” stated a research representative from Chubb. “The Healthcare industry is the number one target of cyber-attacks making up 55% of total attacks in 2017, with ransomware making up 72% of total attack attempts. In 2017 alone, data breaches cost the healthcare field $6.2 billion alone, with the average cost associated with each record lost being around $363 [per record].”

A Comprehensive Cyber Liability Policy Offers Enhanced Protection

Cyber liability is the number one defense in the event a lawsuit is brought against you, however a comprehensive policy will offer much more. The following are some of the key coverages that are provided by a comprehensive policy.

  1. Data Recover/Restoration
  2. Breach Response Team
  3. Extortion Expense
  4. Contingent Business Income
  5. Regulatory Proceeding & Penalty

70% of businesses will cease operations within 6 months of a data breach. For the coverage it provides, Cyber Insurance is very easy to obtain and is relatively inexpensive. While it will not prevent a data breach from occurring, it will be the difference between staying in business and a premature death.  

Start protecting your medical practice today. Give us a call at 732-380-0900 to get started.