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Cyber Liability and Data Compromise

Medical data breaches affect millions of patients each year.
Since 2009, reports show an alarming trend of frequent and large-scale health care records breaches. You can obtain some basic protections through your medical professional liability insurance policy with Physicians Insurance. However, Physicians Insurance Agency can provide even greater protection by offering a more comprehensive policy through a company that specializes in offering this insurance.

You are at risk from:
  • Simple negligence
  • Rogue employees
  • Not encrypting sensitive data
  • Increased use of electronic databases that store vast amounts of information
  • Outsourcing information technology
Therefore, you must protect:
  • Billing information such as credit card numbers, addresses, and bank information
  • Insurance information
  • Social Security number
  • Employee information
  • Medical records

Basic OptionData Compromise Insurance
If you’re insured by Physicians Insurance, you may already have an endorsement on your policy that provides $50,000 in protection for a nominal premium. This limited coverage responds to data breaches and includes:
  • Up to $5,000 of legal and forensic Information Technology review
  • Cost of customer notification
  • Credit monitoring costs
Additional limits up to $250,000 may be purchased

Best OptionCyber Liability Insurance
For more comprehensive protection, you can purchase separate/additional Cyber Liability insurance that provides you with coverage up to $1 million via the Physicians Insurance Agency. This coverage expands on the limited basic option listed above.
  • Data Compromise Protection: This is the first response to a data breach and includes legal and forensic Information Technology review, customer notification, and credit monitoring costs. Premium can be significantly reduced by using the $50,000 data compromise limit on the professional liability policy as a deductible towards this more comprehensive policy. Purchasing the excess coverage can additionally provide public relations and advertising costs, as well as the following:
  • Third-Party Liability Coverage: This covers the group for third-party claims alleging financial loss due to a network security or privacy breach.
  • Network Asset Protection: Provides the necessary coverage to recover and replace data that is compromised, damaged, lost, erased, or corrupted. Includes business interruption and extra expense coverage for income loss. Coverage also includes the defense costs and fines/penalties (to the extent insurable by law) for violations of HIPAA, Red Flag Rules, and the Hi-Tech Act.
  • Cyber Extortion: Covers expenses related to cyber extortion threats, such as identities held at ransom.
  • Multimedia Insurance: Covers electronic or printed media, such as claims alleging libel/slander, copyright/trademark infringement, plagiarism, advertising, or unintentional breach of media contract.

Contact me!
To learn more about ways to protect your practice from data breaches and cyber crimes, or to request a quote, call me at (206) 343-7300 or (800) 962-1399, or e-mail me at

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Physicians Insurance Agency
Physicians Insurance Agency is licensed under the name of Association Insurance Services, Inc. Physicians Insurance Agency/Association Insurance Services, Inc. is licensed to do business in Washington, Oregon, and Idaho.

NOTE: These brief descriptions do not offer or change coverage. All insurance policies are controlled by the terms of the policies.

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