Cyber Liability Video Transcription:
Healthcare, actually, is a major focus of those who offer cyber liability insurance, primarily because of HIPAA. All that information has to be handled in a very careful manner. It has to be secured properly, and any kind of violation of HIPAA laws, the Office of Civil Rights has been very diligent in fining medical practices the last few years. Because the data that they house is so valuable and so sensitive to so many people, they’ve become primary targets for those who either want to hold the data for ransom in what is commonly referred to as ransomware, or want to steal the data for other nefarious purposes.
Cyber liability insurance helps those practices survive those types of incidences, which are becoming more and more common. General liability used to be the policy that covered theft and other mismanagement of data. Insurance carriers, now, are trying to segment out where somebody breaks in and steals data physically. That would fall under general liability. Now, with everything being done electronically, the carriers, in order to assign risk to those areas of IT and technology and digital data, are forcing medical practices and, obviously, other businesses to have these cyber liability insurance policies to cover themselves when something happens. Cyber liability would be there to pay your attorney, pay the government fine, pay any kind of notifications or other kinds of things that you have to do for your patients to help protect their Social Security Numbers or their financial interests.
You can no longer hide behind the fact that you think you’re too small to be the target. You’re not. Your medical practice, whether it be one doctor or five doctors, that’s not too small. In this day and age of the 21st century, and everything being connected, you have cyber liability insurance to protect you for when something goes wrong.
Sean O'Rourke is cofounder and former president of Syzygy 3, Inc., a technology consulting and services firm. Sean now consults on Cyber Liability Insurance for Combs & Company, an innovative insurance brokerage located in NYC. Sean's two-plus decades in technology gives him a unique perspective on the cyber risks facing small- and mid-sized businesses and how best to address them through CLI.