“It’s not if but when your data will be breached,” claims Rick Hindmand, a healthcare attorney and IT expert. With more than 100 million healthcare records compromised in 2015 and 11 million patient records stolen alone in June 2016, Hindmand’s statement has become more relevant than ever, and should cause big and small healthcare providers to take heed of cyber-security insurance.
The advantages of cyber insurance extend beyond the mere cost coverage. “The insurance company will typically have a panel of attorneys, and you can usually choose from several,” Hindmand explained. “They also have forensic experts that they work with who have experience working with just these kinds of issues.” As an added incentive for organizations to be vigilant of protocols and security, the insurance firm is only likely to pay a claim if due diligence can be demonstrated.
The reality is that cyberterrorism and ransomware against the health industry are increasing and cyber insurance can significantly reduce the financial, emotional and time burden caused by data breaches.