Cyber Risk Concerns Adversely Affect Medical Institutions

Despite many recent reports involving cyber breaches to large corporations, the medical industry has its share of exposures and concerns. Cyber risk continues to be a serious issue, and cyber liability is now one of the top threats to the medical industry. Medical records and personal information stored on servers serves as a target to many hackers and thieves who see value in obtaining these files.

While having your clients add to their current IT security is a great way to try to combat this issue, it still isn’t enough to address all of the risks being taken. A comprehensive set of network-security policies and procedures need to be properly implemented and tested, as well as updated on a regular basis, in order to ensure that the proper risk assessment has been made and steps to properly manage the problem are in place.

Reputational damage is another concern

The loss of reputation and brand value to these institutions is another major issue, and the losses suffered due to a breach can be hard to overcome. In many studies this is high among respondents’ concerns. Obviously, if a company experiences a loss of personal data belonging to clients it creates a lack of trust in that company. Having this type of risk is likely to have a cumulative effect with any subsequent attacks occurring.

Hospitals and healthcare professionals have since come to terms with the fact that they now face a serious danger from cyber risk and privacy breaches. Confidential information and personal data is a very valuable company asset, one that these organizations must strive to great lengths to protect. Traditional insurance plans will not cover the costs incurred from misplacing or losing sensitive data.

Lost or stolen data can cost a company millions of dollars if not properly protected. Companies with personally identifiable information and protected health information should purchase standalone products that will help to transfer this risk and protect their balance sheet. Doing business online is a risky proposition, and with individual information becoming more public, along with sensitive business information, this type of exposure can cripple a profitable organization. As a broker you should educate your clients in the best ways to protect their customers and their business through properly insuring against cyber crime.