How Much Cyber Insurance Do You Need?

January 31, 2018

As cyber attacks in health care continue, many practices may be asking, “How much cyber insurance do we need?”

To answer this question, find out what’s included in your current cyber liability coverage. TMLT policies include cyber liability coverage with a limit of $100,000 (each claim). Our coverage includes protection for both first-party and third-party cyber liability losses, such as: 

FIRST PARTY
Coverage for your losses

THIRD PARTY
Coverage for your legal liability to others

  • Privacy breach response costs
  • Multimedia liability
  • Network asset protection
  • Security and privacy liability
  • Cyber extortion
  • Privacy regulatory defense and penalties
  • Cyber crime
  • Payment card industry DSS liability
  • Coverage for lost revenue
 


TMLT also offers broadened coverage that includes $1 million in breach response costs and another $1 million in claim expenses that are “outside” the maximum policy aggregate limit. These two coverages have separate per claim and aggregate limits for covered expenses. These expenses will not reduce and are in addition to the maximum policy aggregate limit.TMLT has received more than 500 reports of cyber-related incidents. Several of the claim payouts have exceeded the $100,000 limit. For this reason, TMLT policyholders have the option to “buy-up” cyber liability coverage with limits of liability of $1 to $3 million. 

The true value of your cyber insurance comes into play with the breach response costs, such as the cost for patient notifications, legal guidance, and IT forensics to determine the cause of the incident.

In addition to cyber insurance, it’s important for practices to have a cyber risk management plan addressing HIPAA compliance and cyber security.

Cyber risk management includes proactive compliance with federal and state medical privacy laws; following best practices in cyber security; and having appropriate cyber insurance in place. The latter may be your financial backstop should a covered loss occur.

Questions? Contact your underwriter or contact TMLT’s PDCS team to speak with one of our cyber security experts.

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