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Cyberattacks are the Growing Threat to Many Industries, and the Healthcare Industry is in exception. In an effort to Shield Themselves From Dangers Such the Hackers and Cyber EXTORION, Physicians WOULD TREMENDOUSLY BENEFIT FROM SPECIALY CYBER COVERAGE AND TAILORED LIABILITY INSURANCE. WHEN IT COMES TO CLAIMS SUCH AS PRIVACY LAWSUITS RESULTING FROM ILLEGALLY RELEASED PERSONAL PROFILES, THE MAJORITY OF CYBER INSURANCE PRODUCTS ARE BUILT TO PROVIDE SUBSTANTIAL LIABILITY INSURANCE PROTECTION. All Areas of the Healthcare Industry Are Potential Targets, and Thus, They Must All of Their Part to Protect the Web of Healthcare Professionals and Networks. Without this group Effort, Any Single Cyberattck Within the Healthcare Industry Could Trickle Down and Branch Out to Adversly Affect Many Additional Entities, As Occred for Change Healthcare in February 2024.
In the Spring of 2024The Healthcare Industry was affected by numerous ransomware attacks. These Attacks Expized Healthcare Organizations to Significant Disruptions in Operations and Relened Sensitive Information, Thereby Making Them More Vulnerable to Privacy Class-Action Litigation. According to a June 2024 Wired articleThe CyberSecurity Firm Recorded Future Noted 44 Ransomware Attack Cases Within the Healthcare Industry. Not Only Did these Attacks have the Direct Adversse Effect on the immedialy exposed entities, buty also led to many third-party liability claims.
Thankfully, Physicians can protect their cats and organizations By Adopting Cyber Insurance Products and AddiThe Insurance Products Such as Directors and Officers (D&O) Insurance, Crime Insurance, Errors and omission (E&I) Insurance, and General Liability Insurance. Cyber Insurance Companies Usually Protect Against Privacy Litigation Due to Hacking. Many Also Cover Crisis Management Costs, Forensic Investigations, and Regulatory Defense Costs. Regarding Regulatory-Risk Exposure for People Handling Medical Records, The Lion’s Share of Cyber-Ininsurance Products Will Protect Against Regulatory Actions and Investigations. Insurance Products Such as Commercial General Liability Insurance and & O Insurance has Potentially Huge ValueEven in the event of a Cyber-Relaced Claim Not Related to Hacking. For instance, if a healthcare organizational experiences a failure in technology, and coverage cave protect the entity and its physicians from liability pertaining to issues such as computer system malfunction.
AMID THE INCREASE IN CYBERATTACKS, However, Courts aretantant to Accept Insurance Companies’ Claims That Their Non-Cyber-Specific Policies Are Intended for Application to Cyber-Relanted Costs. Example, in the 2023 MERCK & CO. v. Ace Am. Ins. Co. Case (NJ App. Div. May 1, 2023), The Courts Held That the “War Risk” EXCLUSION DID NOT PROHIBIT COVERAGE FOR MERCK’S LOSES INCURRED BY THE STATE SPONSORED 2017 NOTPETYA MALWARD ATTACK. Decisions Such As this have prompted the insurance industry to add exclusions Specific to Cyber Threats, Such as state-sponsored Attacks. Given the Diversity of Cyber-Related Coverag, Physicians Must Understand the Various Options.
