The average cost of a data breach is over $200 per patient record and total costs typically exceed $100,000 even in small offices, and these costs are just the preliminary costs in the first 90 days after a breach. Cyber liability frequency and severity are both rising annually.
Unfortunately, many practices lack the legal or technological resources to respond to a breach. Slow or incomplete responses increase liability & damages and perhaps more importantly they diminish customer trust. Organizations can and will be held liable in the case of a data breach; Data Breach Insurance may be tailored to provides protections such as:
- Data Breach Claim Coverage – claims are often from outside parties related to privacy issues, technology security breaches and regulatory action against the practice. These areas of concern all benefit from specialized coverage.
- Data Breach Containment – covers costs of notification, crisis management expenses, credit monitoring costs, costs to investigate a breach.
- Technology Extortion – expenses involved with an extortion attempt, “hacker” threatening to damage your business.
- Data Restoration – cost to restore, recover or replicate data that is damaged or unrecoverable.