Cyber Insurance – What You Need to Know

In our current world, protection against cybercrime -ransom, hacking, computer system breakdown- is needed now more than ever. The first step in protecting your practice against cybercrime is to have strong passwords and firewalls in place. Awareness of scams is also vital. Abiding by HIPAA guidelines can avoid devastating financial and medical information risk. 

 

Penalties for noncompliance of HIPAA guidelines can range from $100 to $50,000 per violation (or exposed record) and have a maximum fine of $1.5 million per year for violations of an identical provision. Financial penalties are not the only punishment, as criminal charges for HIPAA violations can result in jail time.

As a provider, it is important to ensure all steps have been taken to protect not only against massive fines that could put an end to business, but also against cyber attacks themselves. There are many steps you can take to protect your practice against cybercrime. Companies can combat this heightened cyber risk by ensuring they have a good IT team in place, their technological infrastructure is set up correctly, and security measures are in place to educate employees and respond if an incident does occur.

Cyber security is constantly evolving. Technology changes rapidly, and as a reflection so do the specific cyber protection needs of a business. It’s important to ensure that your practice has proper coverage. An annual review of cyber insurance coverage, rather than the default renewal that most companies do, can be helpful in allowing you to find and correct risks to your practice’s cyber security before it’s too late.

 By staying educated and informed, you can minimize your risk of cybercrime impacting your business. Contact us at CARE today. We can help you minimize your risk to cyber attack related malpractice suits.

Footnotes

  1. https://www.truevault.com/resources/compliance/how-much-do-hipaa-violations-cost#:~:text=The%20penalties%20for%20noncompliance%20are,can%20result%20in%20jail%20time.
  2. https://www.insurancejournal.com/news/national/2020/08/12/578788.htm
  3. https://securityboulevard.com/2020/08/is-cyber-insurance-worth-it-2/

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