The recent cybersecurity breach against Change Healthcare has sent shockwaves throughout the industry. As a subsidiary of UnitedHealth, one of the nation’s largest insurers, Change Healthcare’s role in processing clinical, administrative, and financial data for medical practices is expansive.
The severity of this breach serves as a stark reminder that no entity, regardless of size or stature, is immune to cyber threats. If a company as substantial as UnitedHealth can fall victim to such an attack, smaller medical practices are undoubtedly vulnerable as well.
Below, we discuss why now more than ever it is imperative that medical professionals protect their practices against cyber threats with cyber liability coverage.
What Happened?
On February 21, 2024, Change Healthcare experienced a significant security breach that disrupted payment processing and claims. This cyberattack has paralyzed clinics nationwide, impeding the flow of billions of dollars in transactions between doctors, hospitals, pharmacies, and insurers. The repercussions have been far-reaching, pushing some clinics to the brink of financial instability as they struggle to cover overhead expenses without the ability to process claims.
At Unity Insurance, we understand the unique challenges faced by medical practitioners in a digital age. From patient records to financial data, we know that the information stored within medical practices must be increasingly shielded from malicious actors. Cyber liability insurance is specifically designed to protect businesses against the financial and reputational repercussions of data breaches.
What Does Cyber Liability Coverage Cover?
Cyber liability coverage offers a proactive solution to mitigate the financial and reputational risks associated with data breaches, empowering medical professionals to focus on what matters most—the health and well-being of their patients.
This comprehensive protection may include:
- Data Breach Response Costs: Businesses can incur substantial expenses related to investigating a data breach, including notifying affected parties and implementing remediation measures. Cyber liability insurance helps cover these costs, minimizing the financial burden on your practice.
- Legal Expenses and Regulatory Fines: Data breaches often trigger legal proceedings and regulatory investigations, which can result in hefty fines and penalties. Cyber insurance provides coverage for legal defense costs and regulatory fines.
- Business Interruption: The fallout from a cyberattack can disrupt normal business operations, leading to significant financial losses. Cyber liability coverage may help mitigate these losses by providing compensation for income lost during the downtime caused by the breach.
- Cyber Extortion and Ransomware: As seems to be the case for Change Healthcare, cybercriminals often attempt to extort money from businesses by threatening to release sensitive data or deploy ransomware attacks. Cyber insurance offers coverage for extortion payments and ransomware negotiations so that businesses may respond effectively to these threats.
Do I Need Cyber Liability Insurance?
All businesses are unique but medical practices in particular face a large threat from cyber incidents as they deal with an incredible amount of sensitive information. Investing in cyber liability coverage can help medical practices fortify their defenses against the ever-present threat of cybercrime. Our experienced agents work closely with you to assess your unique cyber risk profile and tailor a policy that meets your specific needs. We’re committed to providing comprehensive coverage and proactive risk management solutions to safeguard your practice against cyber threats.
While there is no one-size-fits-all solution, the recent cybersecurity breach against Change Healthcare serves as a sobering reminder of the pervasive nature of cyber threats in the industry today. As medical practices increasingly rely on digital systems to manage patient information and financial transactions, we believe the need for proactive cybersecurity measures has never been more clear.
Choose Unity Insurance as Your Maryland Insurance Agency
At Unity, we strive to serve as your trusted advisor dedicated to helping you navigate the challenges of 2024 and beyond. With access to a wide range of insurance carriers, we can help you compare options and recommend the most suitable benefits that align with your unique needs. Connect with us today to learn more about protecting your practice with our cyber liability insurance solutions.
Speak With An Agent At Unity Insurance About Your Cyber Insurance Needs Today
Unity’s insurance professionals serve as your advocate from the very beginning. From selecting coverage to filing a claim, we are by your side every step of the way. At Unity Insurance, we know insurance plays a vital role in every stage of your life and business so our professionals provide guidance and support to ensure you make the right decisions regarding your insurance options. We work with clients in Maryland, Delaware, DC, and Virginia to provide the best plan for individual needs. Call 410-539-6642 to learn how the experienced insurance agents at Unity Insurance can assist you.