February 3, 2023

6 Reasons Your Healthcare Organization Needs Cyber Insurance

The healthcare industry is under constant attack from cybercriminals. In fact, healthcare data is now the most valuable type of data on the black market, fetching up to 40 times more than credit card data.

One way to help reduce the cost of cyber attacks is to purchase cyber insurance. Cyber insurance is designed to help cover the cost of repairing damage and lost business after a data breach.

While it won’t stop data breaches from happening, it can help reduce their financial impact of them.

If you’re considering purchasing cyber insurance for a hospital or healthcare organization, here are 6 compelling reasons to do so.

1. To protect your patients’ data

As a healthcare professional, you know that patient data is confidential and must be protected at all costs. Cyber insurance helps cover the costs of investigating the breach, notifying affected patients, and providing credit monitoring and identity theft protection services. Cyber insurance can also help cover the costs of lawsuits and settlements that may arise from a data breach.

2 . To comply with HIPAA

Cyber insurance can help you comply with the Health Insurance Portability and Accountability Act (HIPAA). This law requires healthcare organizations to take steps to protect patient data from being accessed, used, or disclosed without authorization. In addition, cyber insurance can help cover the cost of a HIPAA fine, which can range from $100 to $50,000 per violation.

3. To prevent ransomware attacks

Ransomware is one of the most common types of cyber attacks on hospitals, and the number of attacks continues to rise each year. According to Sophos, the average ransomware recovery cost for a healthcare organization is around $1.85 million. Cyber insurance can protect your business from the financial damages caused by a ransomware attack, which includes the recovery cost of PHI (Patient Health Information).

4. To defend against phishing attacks

Phishing attacks are on the rise and are now the #1 most common attack on healthcare organizations. They can be costly for healthcare organizations. Cyber insurance policies can help cover the costs of investigating and responding to a phishing attack. They can also help cover the costs of restoring data and systems damaged or corrupted during the attack.

5. To reduce the cost of data breaches

In the U.S., 62% of companies experienced a data breach within the last year. Data breaches can be prevented by taking proper cyber security measures, but even with these measures in place, there is still a risk that a data breach could occur. So, organizations must be prepared to deal with the fallout if a data breach does occur. A cyber insurance policy can help cover the costs of data recovery, legal expenses, business interruption, and other costs related to the breach.

6. To protect your reputation

If your business is the victim of a cyber attack, the last thing you want is for your customers to lose faith in your healthcare organization or hospital. But if you have cyber insurance, you can use the coverage to help offset the cost of damage control and publicity. This can help protect your business's reputation in the aftermath of a cyber attack and mitigate additional damages and losses.

1Fort helps you secure cyber insurance easily

There are many ways that cyber insurance can reduce the cost of data breaches. Still, the reality is with attacks becoming more costly and prevalent, today, insurance companies require a lot more from organizations and companies to get approved for cyber insurance.

1Fort helps businesses and their brokers minimize the work required to secure their cyber insurance. By integrating with your cybersecurity tools, our comprehensive platform gives you complete visibility into your cyber health to ensure you meet insurer requirements. This allows your broker to help secure quotes from A-rated carriers.

Keep your healthcare organization and patients protected from cyber attacks. Schedule a demo to learn how we help businesses and brokers.