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Healthcare Cyber Insurance? Fortify Your Defenses

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Healthcare breaches, including ransomware attacks, continue to increase. As a result, many healthcare organizations seeking cyber coverage to help defray the costs associated with a ransomware attack or other data incident may find that carriers have increased premiums, reduced coverage, and tightened underwriting requirements. Healthcare organization leaders should understand that implementing reasonable administrative, technical, and physical safeguards to protect the organization’s information and operational systems is not only required by laws such as HIPAA, but is increasingly required to obtain cyber coverage.

A recent report by Sophos, a technology security company, confirms this new reality. Sophos reported that one of the reasons for the growing demand for cyber insurance by healthcare organizations is the rampant growth in ransomware ( Sophos Report ). According to the Sophos Report, ransomware has led to more payouts and less profit for insurers, making cyber insurance coverage difficult and expensive to obtain, even driving some insurers out of the market.

The healthcare organizations surveyed by Sophos responded that: 66% experienced a ransomware attack in 2021;

78% have cyber insurance;

93% of respondents with cyber insurance had difficulty renewing the policies; and

45% of respondents with cyber insurance said the policies are incredibly complex. Notwithstanding the complexity […]

Click here to view original web page at www.jdsupra.com

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