Security Breaches and Big Data Insurance

Security Breaches and Big Data Insurance

Data breaches and cyber attacks are a huge concern in the healthcare industry, and stolen or misused computers are often part of the problem. These breaches are costly and the sensitive data that winds up in the hands of thieves can be quite costly to the facility, their staff, and the patients who were made vulnerable by the attack. Medical, financial, and other important personal information ends up at great risk for misuse and abuse, and big data insurance is one way to minimize the damage.

Data breaches are costly in many ways

Patients affected by data security breaches are entitled to credit monitoring for identity theft, but this certainly does not address all of the potential damages. Cases of this nature also result in medical identity theft (which can cost a minimum of $20,000 to deal with).

In addition, sometimes this process can take up to two years to discover and cost patients in other ways, such as the loss of insurance coverage, increased health insurance premiums, and errors in their EMRs (that aren’t easily corrected and can endanger their lives).

Another important factor to consider is the loss of trust caused by a cyber breach. This often results in huge costs to a healthcare facility. The organization’s reputation can become irreparably damaged if they are unable to expertly mitigate the public relations fallout that may include mass media, as well as social media exposure.

You may want to advise your clients faced with such an exposure to hire a public relations consultant who is experienced in crisis communications, which is the smart thing to do. While you may feel that in-house staff resources may be adequate, they are in all likelihood probably not enough to handle this type of ongoing crisis, especially if the event goes viral.

When a security data breach happens, it’s vital to avoid making the type of common errors that can damage the efforts to defend against lawsuits and class-action suits. It’s good practice for insurance agents of healthcare facilities to constantly check in on their healthcare clients who invest in big data insurance to make sure that their guidelines and protocols are regularly updated. This is one way of providing an invaluable service that will give them confidence and trust in the services that you provide.