Telehealth has found a place in our society amid the COVID-19 pandemic. With this, health institutions are slowly adopting digital technologies as a norm in providing health services. Statistics also show that the global digital health market may grow 25% from 2019 to 2025.
From the patient’s perspective, this movement is not that bad. It gives them easier access to medical assistance. However, with increasing reliance on virtual platforms, health care institutions may also face significant risks related to cybercrimes.
What is cyber liability insurance?
In the health care industry, cyber insurance acts as a shield against the financial repercussions of cyber threats. Think of how regular insurance helps cover costs after accidents. Cyber insurance acts in the same way when health care institutions face data breaches or cyberattacks.
Cyber liability insurance can provide protection in terms of:
- Data breach response: This covers the costs that the institution may need to pay in order to notify the affected individuals and provide credit monitoring services. It may also help them with the expenses of managing public relations.
- Legal expenses: The insurance may also help cover legal fees, settlements or judgments if the health care institution faces legal action due to a data breach.
- Regulatory fines: The health care organization may also face penalties because a breach may mean they failed to comply with data protection regulations. There is cyber liability insurance that can also help cover these penalties.
- Cyber Extortion: If hackers demand money to unlock their computer systems or stolen data, cyber insurance can help pay the ransom and the costs of talking to these cybercriminals to resolve the situation.
- Data recovery and restoration: Institutions may also be able to get coverage for the cost that they need to shell out in order to recover and restore their patient and customer data.
- Business interruption: A cyberattack can disrupt any business operations. Health care is no exception. The insurance may be a way for them to compensate for the revenue loss.
Cyber liability insurance is a crucial component of risk management for health care institutions. It helps them navigate the complex and evolving landscape of cybersecurity threats and data privacy regulations. It provides peace of mind in an era where protecting patient information is of utmost importance.