Why Small Medical Offices Need Stand-Alone Cyber Insurance

Cyber risk is a looming threat to the healthcare industry, and small medical offices are not exempt.  

Small doctor’s offices may think their risks of a cyberattack are low. However, small practices and other small businesses are prime targets for cybercriminals. While healthcare providers understand the importance of protecting patient data, they often need to pay more attention to the unique cyber risks they face.

Small Practices Are Vulnerable Targets

Compared to large hospital systems, small medical offices typically operate with limited IT resources and budgets. Therefore, they are viewed as easier targets for cybercriminals who aim to exploit vulnerabilities in their systems.

Without robust internal cyber expertise, cybercriminals can use low-cost attacks such as phishing and malware to exploit vulnerabilities that can go unnoticed.

IBM Security reports that the average data breach cost is $4.88 million. That price includes the costs of incident response, downtime and lost revenue, as well as the long-term reputational damage to a business.

That could be financially devastating for a small medical office. However, obtaining cyber insurance can help.

Cyber Insurance Fills the Gaps

Many medical professional liability policies offer limited cyber coverage. Still, it likely isn’t enough in the event of a cyber incident. That’s where a stand-alone cyber policy will help.

Cyber insurance policies pay for damaged computer systems, legal expenses, lost revenue, and more. Typical cyber insurance coverages include:

• Data breach response and notification expenses
• Regulatory fines and penalties
• Business interruption losses
• Cyber extortion and ransomware payments
• Liability for third-party data breaches
• Attorney fees and litigation costs

Additionally, many cyber insurers include risk assessment services and recommendations for improving cybersecurity practices. That can help small offices prevent attacks before they occur.

Don’t Leave Your Practice Vulnerable

The risks associated with cyber threats are real for smaller healthcare practices. A stand-alone cyber insurance policy offers a critical layer of protection.

Whether you are in the market to add cyber coverage or evaluate your current coverage, working with a trusted insurance broker can help you understand the nuances of policies. Not all cyber liability insurance policies are created equal.