Beazley Breach Response

Beazley Breach Response in Tech Insurance & Cyber Coverage

Healthcare

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Bob Wice

Head of Underwriting Management. Cyber & Tech

Information exposures are difficult to control and are subject to many different types of loss events. And even with the best systems, controls, personnel and procedures, no healthcare organization is immune to the risk.

significant exposure
class action lawsuits
regulatory investigations
why Beazley?
coverage

The scale of protected health information (PHI) maintained by healthcare organizations and the digitization of electronic health records have increased the vulnerability to large breaches. Compulsory breach notification laws provide a great deal of exposure. In addition to the patchwork of state laws affecting all businesses, the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH) operate at the federal level. These laws require time-consuming and labor intensive internal investigations, specialized outside vendors, and can often disrupt a healthcare organization’s ability to prioritize patient care.

The publicity and patient dissatisfaction that surround a cyber breach have spurred a wave of class action complaints against organizations big and small. Relying on a variety of medical privacy laws, enterprising plaintiffs' lawyers have filed complaints seeking billions of dollars in damages. The specter of such damages, and the sizeable costs of litigation, often push organizations to settle even in the absence of any clear harm to the affected patients.

State and federal regulators have made one point clear: a significant breach of patient information and patient records will result in monetary penalties, onerous corrective action plans, and on-going audits. Whether through the strict data privacy and security requirements of HIPAA privacy rule and HITECH, or the increasing interest of state attorneys general in enforcing medical privacy laws, the regulatory landscape for healthcare organizations carries an immense amount of risk. Regardless of any legal liability, a healthcare cyber breach greatly increases the risk of reputational and brand damage.

Beazley, a leading insurer of technology and information security risks, has developed BBR, a solution to privacy breaches and information security exposures tailored to the needs of healthcare organizations. BBR is a complete privacy breach response management and information security insurance solution which includes a range of services designed to help you respond to an actual or suspected cyber breach effectively, efficiently, and in compliance with the law.

Breach response

Legal services
Computer forensic services
Notification services for up to 5 million affected individuals
Call center services
Credit monitoring, identity monitoring or other personal fraud or loss prevention solutions
Public relations and crisis management expenses
All of the policy’s multiple limits will be available for breach response.

First party

Business interruption loss from security breach or system failure
Dependent business interruption loss from security breach or system failure
Cyber extortion loss
Data recovery loss
Data and network liability.

Third party coverage

Third party information security and privacy coverage with up to $15M
Full media liability
Regulatory defense and penalties
Payment card liability and costs.

eCrime

Fraudulent instruction
Funds transfer
Telephone fraud.

Criminal reward coverage

We greatly appreciate Beazley's Breach Response services and the efficiency and knowledge that is available to us when we need it the most.

Large Multi-Facility Healthcare System

Healthcare team

Breach Response Services