Data Breach Insurance

Whether patient information has been jeopardized because of a stolen laptop, a lost flash drive, outsiders accessing your computer system, or some other event, your patients expect you to protect their personal information and HIPAA requires it.

Data breach insurance may be critical for several reasons. Most important, it can help absorb some of the costs associated with a breach.

Why Data Breach Insurance is Important

Your patients' information—whether it's stored electronically or as hard copy—is both confidential and valuable. And it poses a threat to you and your patients if it's lost or stolen. No practice is immune to this risk.

A data breach insurance policy typically includes coverage for:

  • Expenses related to notification, data recovery, credit monitoring services, crisis management/public relations and good faith advertising
  • Defense and liability including defense costs, civil awards, settlement or judgments

Even if you have safeguards in place and review them frequently, having the right insurance coverage can help compensate you for expenses incurred if patient data is at risk. This could include expenses:

  • To inform those who may be the victims of the theft
  • To replace the data and for income lost during the recovery process
  • To recover lost information (victims may expect you to pay for it)
  • For lawsuits if victims who suffer financial losses from identify theft sue you

Traditional insurance products such as general liability, property, business income and crime insurance typically do not cover data breaches.

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NCMIC Insurance Services is a licensed insurance agency. Insurance coverage is underwritten through many of the nation's leading insurance carriers. CA license #0B84564. In NY: NCMIC Insurance Agency. In MI: NCMIC Insurance Services Agency, Inc.