data breach insurance

Common Best Practices for Handling a Data Breach

Hearing about the plethora of private data hacks these days can be worrisome when you’re a business owner. However, these situations demonstrate that there’s no better time than now to implement your own incident response plan in preparation for digital warfare. Here are some common best practices for handling a dangerous data hack, including setting up your company with substantial data breach insurance.

Conduct a risk assessment test of your business. Like any other policy put into effect to safeguard your company, it’s best to conduct a risk assessment test using an industry standard cyber framework. This gives you the opportunity to spot any vulnerabilities and improve them before malicious attacks occur.

Create a separate team to govern over cybersecurity threats. If it’s within your budget to do so, putting together a solid team of cybersecurity experts to manage the day-to-day threats can be highly beneficial. Other than having data breach insurance, this is the best maneuver for preparation.

Speaking of insurance, buy cyber risk coverage for optimal reassurance. Nothing can be more preventative than having a strong cyber insurance policy in place. This protects the company not only through financial means as a first-party response but also in the face of potential lawsuits from third-party vendors.

Staying vigilant about cybersecurity is essential. Follow these best practices to protect your business from digital attacks, like purchasing data breach insurance that gives you all the best coverage.

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Cyber Insurance: What You Need to Know

If you’re just starting a business or are thinking of evaluating your insurance policy to be sure you have enough coverage, now may be a good time to consider the benefits of purchasing data breach insurance. This valuable insurance can protect you in the event of a breach. Before you get started, here are some things to know.

Anyone Could Benefit

Businesses of all size can benefit from purchasing a data breach insurance policy. Even if you’re a one-man operation, your business could be at risk for a breach. If you operate a website, are on social media, handle transactions electronically or sell your product or service online, you could be vulnerable to an attack.

Most General Policies Don’t Cover Attack’s

You may think that your general liability insurance policy covers data breaches, but you may want to check your policy. Most general insurance policies don’t cover these types of incidents which could leave your business at severing financial risk if an event were to occur.

It can Help Before a Breach Occurs

Having data breach insurance could help your business even before an incident occurs. Your insurance carrier can meet with you to see what measures you currently have in place and make recommendations for upgrades where appropriate. Some carriers even offer in-person training and seminars for your employees so they know how to safely handle sensitive information and how to protect your company from a potential breach.

Knowing how cyber insurance works, you may want to consider adding it to your insurance policy. That way, if a breach occurs, you can rest easy knowing you’re prepared.

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Cyber Crimes Plague the Healthcare Industry

The healthcare industry is facing a host of cyber security issues, which has the financial and reputational impact for hospitals and other healthcare institutions. In recent years, the healthcare industry has been under attack by cyber criminals looking to profit from stolen private and confidential information culled from medical records.

 

Your clients’ in the health care industry are extremely vulnerable to attacks and need data breach insurance as a way of protecting themselves with first party coverage, as well as third party coverage in the event of a lawsuit.

 

It’s no secret that data breaches have cost the healthcare sector billions of dollars already, a number that will most certainly continue to rise. The fact is that nearly 8 out of 10 healthcare institutions have been hit with two or more data breaches dating back to 2014. Moreover, nearly half of all healthcare institutions have been affected by more than five breaches since that time.

 

Most healthcare institutions unprepared for an attack

 

According to Symantec, a leading enterprise security vendor, healthcare companies are notorious for their limited investments in cyber security. This makes them a welcome target for hackers and cyber thieves. Healthcare institutions have been notorious for under spending on cyber security programs in recent years, but the tide may be changing.

 

According to the Federal Bureau of Investigation, electronic health records (EHR) are far more valuable than financial data. EHRs can sell for as much as $50 in the black market, compared to less than five dollars for a stolen social security number or credit card number.

 

The reason being is that EHRs are deemed more valuable because they’re more difficult to detect. Plus, EHR theft takes almost twice as long as normal identity theft to be determined. Unlike stolen credit cards, which can be canceled, and fraudulent charges that can be disputed, medical identity theft is a more complex issue and thus very difficult to resolve.

 

Cyber criminals have also resorted to using certain malware to infect a healthcare organization’s IT system, preventing the company from accessing certain files or sectors until a ransom demand is met. With so many concerns and so much at stake, your clients would be wise to secure data breach insurance as a way of combating these problems when they occur.

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