Guest post – In collaboration with John A. Adcock, CLU®, ChFC®, CFP®, at Treloar & Heisel, our insurance partner

In today’s fast-paced, technology-driven world, many doctors recognize the importance of IT security. However, even the most robust security measures can be compromised. Data breach insurance serves as an additional safeguard against cyberattacks, including hacking and ransomware.

Cybercriminals often target healthcare practices to access confidential information such as financial details, social security numbers, and health records. Ransomware attacks can disrupt operations entirely, often requiring significant payments to restore functionality—leading to not only operational but also financial strain on the practice.

In this article, we’ll dive into the world of cyber insurance, what it entails, and uncover whether you need it as a doctor.

Safeguard Your Practice

Healthcare professionals are legally obligated under HIPAA to implement measures that protect patient data.

From a financial standpoint, many Business Owner’s Policies (BOPs) include provisions for data breach coverage, offering a baseline layer of protection. Optional riders can be added to these policies, allowing you to enhance your financial security against the costs associated with cyberattacks, ensuring comprehensive coverage for potential risks.

Protect Your Personal Assets

Personal devices such as your home computer, smartphone, or tablet are equally vulnerable to security breaches. A cyberattack could result in financial loss, identity theft, or compromised personal data.

How prepared are you to handle the financial fallout if you became a victim of such an incident? Ensuring you have appropriate personal cyber insurance can provide a safety net, protecting your finances, and offering peace of mind.

Verifying Your Coverage

Assuming your existing insurance policies automatically include cyber coverage could leave you exposed—many policies either lack this protection or provide insufficient limits for your specific needs. The good news is that insurance providers are increasingly offering tailored options to help individuals and businesses minimize the financial risks associated with personal data breaches. Taking the time to review your coverage and explore specialized cyber insurance policies can ensure your financial security in the face of evolving threats.

Leverage Your Homeowner’s or Renter’s Policy for Cyber Protection

If you’re seeking personal cyber insurance, you may be able to enhance your existing homeowner’s or renter’s policy to include this coverage. Whether you own or rent, cyber insurance can often be added as an endorsement to address modern risks.

Since this type of protection is a relatively recent addition, it might not have been discussed when you initially purchased your policy. It’s worth reviewing your coverage and consulting your provider to ensure this valuable financial safeguard is included.

How Does Cyber Insurance Work?

Consider a scenario where your home computer is hacked, exposing your data, or subjected to a ransomware attack. With the right insurance coverage, a team of experts can step in to handle the situation, sparing you from navigating the situation alone.

For example, if the attacker demands $100,000 in Bitcoin to unlock your computer, your insurance provider might advise you to halt all communication with the attacker and refrain from making any payments. They could then take over negotiations and manage the case.

Even if a ransom is ultimately paid or you incur financial losses due to exposed data, a robust cyber insurance policy can offer financial relief. Depending on your coverage, the insurer may pay the ransom, cover your losses, or both, providing protection and reassurance during such incidents.

What Role Does Antivirus Software Play in Financial Protection?

While having antivirus software on your computer is a good start, it alone won’t provide comprehensive protection in the event of a data breach. Think of insurance as a proactive financial safeguard—something you secure before you actually need it.

Relying solely on “do-it-yourself” solutions may leave vulnerabilities and result in financial exposure. To ensure you’re fully covered, it’s wise to collaborate with a qualified financial services professional who can help you develop a robust risk management strategy tailored to both your professional and personal needs.

Our insurance partner, Treloar & Heisel, offers comprehensive insurance, specifically for doctors. Ensure you and your practice are protected against data breaches and cyberattacks with policies that address the unique risks faced by healthcare professionals. Secure your practice and assets today with the right coverage.