NOVA Computer Solutions IT Solutions will manage your security and insurance policies to ensure you get a payout when you need it.
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What do you know about cybersecurity insurance? Do you know whether your dental practice needs it?
The cybercrime landscape is getting more unpredictable and complex every day. Cybercriminals are finding more effective ways to infiltrate practice networks and steal critical practice data—but you already know all this.
Cybersecurity insurance is a relatively new type of protection designed to help cover the potentially massive expenses associated with an unavoidable data breach. It can be a worthwhile investment if you know how it works.
The ongoing threat of cybercrime has led practices to consider cybersecurity insurance as a final layer of reassuring protection.
It’s becoming increasingly necessary, as many insurance providers have begun drawing a clear line between typically covered losses and those incurred by cybercrime-related events.
Often referred to as cyber liability or data breach liability insurance, cybersecurity insurance is a type of stand-alone coverage. It’s designed to help practices cover the recovery costs associated with any cybersecurity incident, including:
Breach And Event Response Coverage
A very general and high-level form of coverage, this covers a range of costs likely to be incurred in the fallout of a cybercrime event, such as forensic and investigative services; breach notification services (which could include legal fees, call center, mailing of materials, etc.); identity and fraud monitoring expenses; public relations and event management.
Regulatory Coverage
Given that a range of organizations (such as The Securities and Exchange Commission, the Federal Trade Commission, the Department of Homeland Security, and more) have a hand in regulating aspects of cyber risk in specific industries, there are usually costs that come with defending an action by regulators.
This covers the costs of insufficient security or “human error” that may have led to a privacy breach. Examples may include an employee losing a laptop or e-mailing a sensitive document to the wrong person.
Liability Coverage
This type of coverage protects the policyholder and any insured individuals from the risks of liabilities resulting from lawsuits or similar claims.
But, if you’re sued for claims that come within the insurance policy’s coverage, this type of coverage will protect you.
Cyber Extortion
This type of cybercrime event is generally a form of a ransomware attack, in which a cybercriminal keeps encrypted data inaccessible (or threatens to expose sensitive data) unless a ransom is paid.
Coverage of this type addresses the costs of consultants and ransoms, including cryptocurrencies, for threats related to interrupting systems and releasing private information.
The specific premiums and other rates you pay can vary greatly depending on the size of your business, the factors affecting your cybersecurity posture and potential risk, and more.
For a general guideline, consider this recent study that determined the average cyber insurance annual expense in 2019 $1,500 for $1M in coverage, with a $10,000 deductible.
Yes. While you may not be required by the law to have cybersecurity insurance.
However, depending on the industry, specific compliance regulations recommend it. Cybersecurity insurance policies are offered by a variety of insurers, and policy prices and exclusions vary widely among different providers.
Odds are, it’s more likely you’ll need cybersecurity insurance in one form or another at some point, which is why it’s wiser to invest now. At the very least, you should get a quote on a policy so you can make a properly informed decision.
According to Security Magazine, the average cost of a data breach for a small practice is $36,000 to $50,000. Not to mention the lost productivity and reputational damage to your practice.
Of course, this number is much greater when we look at large successful practices. Here are the stats:
In light of this, dentists have started investing in cyber insurance coverage to protect them against these expenses.
Cybersecurity insurance is protection explicitly designed to help cover the potentially massive expenses associated with an unavoidable data breach. It can be a worthwhile investment if you know how it works.
A common misconception is that a cybersecurity insurance policy is a catch-all safety net, but that’s not the reality. Without a comprehensive cybersecurity strategy, a practice may not qualify for a policy in the first place.
Furthermore, in the event of a hack, a practice may not qualify for full coverage if its cybersecurity standards have lapsed or if it can be found to be responsible for the incident (whether due to negligence or otherwise).
The core issue is that as cybercrime becomes more common and damaging, insurers will become more aggressive in finding ways to deny coverage. It’s in the interest of their practice to pay out as little as rarely as possible, which means the policies will tend to rely on a series of complicated clauses and requirements that covered parties have to comply with.
A key example is when Mondelez International was denied coverage for the $100 million of damage they incurred from the NotPetya attack. Their insurer, Zurich Insurance, cited the obscure “war exclusion” clause, claiming that Mondelez was a victim of a cyberwar.
This is not an isolated incident. As discovered by Mactavish, the cybersecurity insurance market is plagued with issues concerning actual coverage for cybercrime events:
All this shows why dentists need to look carefully at the fine print of their cybersecurity insurance policy and ensure their cybersecurity standards are up to par. No one should assume they’re covered in a cybercrime attack—after all, for every $1 million paid in premiums, insurance companies only pay out $320,000 in claims.
Application Management
We can manage the questionnaire on your behalf, identifying any areas that require changes to help you qualify for a policy or even a lower insurance premium.
Cybersecurity Remediation
We make necessary modifications and changes that cost as little as possible. In many cases, it’s simply a matter of developing the proper documentation or changing settings in your systems to comply with your carrier’s cybersecurity standards.
Additional Resources
We offer templates for cybersecurity management policies and statements of operations so that you don’t have to start from scratch.
Dental practices that work with NOVA Computer Solutions IT Solutions can rest easy knowing they’re covered even if a breach occurs. Our proactive cybersecurity support and cyber insurance policy management will ensure that you encounter zero issues when submitting a claim.
Meeting the stipulations by cybersecurity insurance providers may not be easy, depending on your cybersecurity posture. NOVA Computer Solutions IT Solutions can help you improve your approach to cybersecurity.
Our team provides cybersecurity and technology services for organizations like yours—we are available to help you develop a robust cybersecurity defense.
We can advocate your qualification to qualify for a policy and minimize the chance that you’ll have to claim your cybersecurity insurance. Get in touch with our team to get started.
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