The Costly Truth of Medical Records
Ten years ago, cyber security wasn’t something many of us were very familiar with. We certainly weren’t as concerned with it in our daily lives as we are today. It just wasn’t something you heard much about. But today, stories about computer hacks and threats are all over the news. Just in 2014 alone a large number of well-known companies were the victims of data breaches; Target, Michaels, eBay, Home Depot, Sony, J.P. Morgan Chase and most importantly, in the healthcare industry, Community Health Systems. No company no matter how large or small is safe anymore from cyber threats.
It’s especially important for the healthcare and senior living industries to take extra precautions. According to the Identity Theft Resource Center, 2014 was a record year for data breaches, with breaches in the medical and healthcare industry topping the list at 42.5% of all cases. Why is the healthcare industry such a big target for these breaches? The main reason is the value of medical records on the black market. Credit card information, social security numbers and other personal data can be used to commit identity theft and other crimes. The personal health information (PHI) that’s included on medical records is extremely valuable to criminals as this information can be used to obtain prescriptions and medical treatments in the victim’s name.
The average cost for a partial electronic health record (EHR) on the black market is around $50, as compared to $1 for a social security number or credit card number, according to the Federal Bureau of Investigation. It’s not just computers that include this information; lost laptops, tablets and cell phones can all be breached. Facilities can be fined by HIPPA with penalties ranging from $100 to $50,000 per violation, with a $1.5 million maximum penalty per year. Add these fines together with other expenses involved in a data breach – investigation, legal advice, notification costs, etc. – and it all adds up very quickly. Because of these costs, cyber liability insurance is quickly becoming one of the fastest growing insurance coverages. Cyber liability policies typically cover the following exposures:
- Notification costs
- Credit monitoring
- Legal expenses
- Fines and penalties
- Business interruption
- Lost or destroyed data and system damage
- Computer fraud
- Identity theft
- Investigation expenses
- Public relations and crisis management costs
For a better understanding of cyber liability and insurance, register for our upcoming webinar. Can’t make this one? It’ll be up on Assurance University Replay post-event, but you can register for part two now.
- Don’t Gamble with Protecting Your Healthcare Facility
- Private Companies Must Wake Up On Cyber Liability Insurance
- Cyber & Privacy Liability: Part 1 Webinar
- Cyber & Privacy Liability: Part 2 Webinar
- Cyber Liability E-Book
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