Cyber Insurance Helps Combat Data Theft Risks

The healthcare industry, which includes several different types of companies, including hospitals, hospices, assisted living facilities, and urgent care locations (to name a few), faces the risk of a network security breach every single day. The storing of personal health information of clients causes a great concern, especially should this information be accessed or stolen by hackers or others looking to profit from it.

The fact is, without proper security protocols, everyone is open to identity theft, as well as unauthorized use of any stolen confidential information. Other valuable information, such as tax identification numbers, credit card numbers, bank account numbers, and more are all at risk. Cyber insurance is dedicated to helping any and all firms protect against this growing exposure.

Exposures result in potential losses

Most state laws mandate that businesses must notify anyone whose private information has become compromised after a breach occurs. This obviously can be quite a costly undertaking, plus the damage to reputation will often be a further result due to the negative impact caused by such an occurrence. If your client has sensitive confidential information on their computers, servers, and laptops, as is the case with most companies nowadays, what steps are being taken to prevent such a theft from occurring?

These threats not only exist from unknown parties, but, also from people within their very own organization. Disgruntled or dishonest employees may look to profit from the theft of credit card numbers and other valuable private information, making cyber insurance important for internal concerns as well.

The Internet is now a standard for business transactions

Companies nationwide now depend on the ability to transact business via their websites, therefore they must enact policies and procedures related to managing private and confidential information in order to combat cyber theft. Most businesses today must contend with cyber-related exposures that will not be covered under any traditional business insurance policies. Since there is no standardized policy related specifically to cyber liability issues, coverage for these types of losses will vary from one insurance company to another. Speak to your clients involved with the healthcare industry to help them to better understand their exposures and suggest they secure cyber insurance coverage to combat any issues after a theft occurs.

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