Absorbing the Costs of a Breach
You’re diligent about protecting patient information. But hackers are determined, too.
Stolen laptop, misplaced papers, hackers — these are just a few of the ways information can be compromised. But your customers expect you to protect their personal information, and it’s a HIPAA requirement.
In most cases, standard insurance products don’t cover issues with patient information. Data breach insurance can help defray of the costs a breach may cause.
Why Data Breach Insurance is Important
Customer information is confidential — and extremely valuable. Lost or stolen data, both physical and digital, poses a threat to you and your customers. Despite your best-laid plans, all businesses are at risk for data breaches.
A data breach insurance policy typically provides coverage for:
- Expenses related to notification, data recovery, credit monitoring services, crisis management/public relations and good faith advertising.
- Defense and liability including defense costs, civil awards, settlement or judgments.
Having the right insurance coverage can help compensate you for expenses incurred if customer data is at risk. This could include costs of:
- Informing those who may be the victims of the theft
- Replacing the data and for income lost during the recovery process
- Recovering lost information (victims may expect you to pay for it)
- Lawsuits, if victims who suffer financial losses from identify theft sue you