The increased risk of malware, phishing, ransomware, data breaches, and other types of cyberattacks, along with cybersecurity legislation and organizations’ heightened awareness of the need for risk-mitigation and insurance strategies, is responsible for the growing Cyber insurance market. According to recent market research from P&S Intelligence, the Cyber insurance market was valued at $11.9 billion in 2022 and is projected to rise at a rate of 19.1% from 2022 to 2030 to reach $48.3 billion.
While the rise in cyberattacks has impacted every industry, the health care sector is particularly vulnerable, which has driven its demand for coverage to more than 20% of the Cyber insurance market. According to the P&S Intelligence report, the increased rate of digitization and internet penetration in the health care sector has created online vulnerabilities, resulting in the exposure of critical records to internal and external threats.
In fact, over the years, the health care industry has been a popular target for cybercriminals. Stolen health information is sold on the black market for hundreds or thousands of dollars. The average data breach cost for each stolen record is approximately $400, compared to about $150 for a non-health care organization.
As a result, it is necessary for health care organizations – home health care and hospice providers, medical staffing firms, medical facilities, nursing homes, assisted living facilities, and others – to be protected from cyberattacks, which is why Cyber insurance is gaining popularity in the sector.
Our Cyber Insurance Program for Health Care Organizations
Manchester Specialty Programs provides a Cyber insurance program for the health care niches we serve that includes specific coverage and limits that can be packaged within our General Liability and Professional Liability policies. You can also opt to provide a more robust “stand-alone” policy.
Our program includes coverage to help pay for the following costs:
- Notification of all parties
- Loss and defense expenses for which the insured is responsible and costs related to regulatory proceedings
- Replacement or restoration of electronic data or programs damaged as a result of a virus, malicious code, denial of service attack, and other e-commerce incidents
- Loss and defense expenses due to claims alleging programming errors or omissions that result in the disclosure of a patient’s personal information
- Extortion or ransom payments
- Loss of income as a result of a cyber event
- PR and crisis management to help minimize reputational damage following a security breach
About Manchester Specialty Programs
We specialize in providing agents and brokers with totally integrated business insurance solutions to meet the needs of Home Care, Allied Health, Medical Staffing, and Human/Social Services organizations. For more information about how our products and services can help protect your insureds, please contact us at 855.972.9399.