Welcome to Our Cyber Awareness Month Blog Series Part #3!
Throughout October, we’re bringing you a five-part series dedicated to helping dental offices protect themselves from the growing threat of cyberattacks. From understanding the risks to implementing cybersecurity best practices and exploring the vital role of cyber insurance, each blog is designed to provide actionable insights tailored to dental practices. Cybersecurity is essential for safeguarding your practice, your patients and your reputation.
Why Not All Cyber Insurance is the Same: What Dental Offices Need to Know
Even with robust cybersecurity measures in place, no system is entirely foolproof. That’s where cyber insurance comes in to protect your practice from the financial and operational impacts of a cyberattack. However, not all cyber insurance policies are created equal — sometimes, you really do get what you pay for.
What is Cyber Insurance?
Cyber insurance is designed to cover the costs associated with cyberattacks, data breaches and other cybersecurity incidents. For dental offices, this includes both first-party and third-party coverage.
• First-Party Coverage: This helps cover the costs of recovering from a cyberattack, including data recovery, legal fees and even the cost of notifying affected patients.
• Third-Party Coverage: This protects you from legal claims made by patients or others affected by a data breach at your practice.
Understanding Cyber Insurance Coverage
Some IT companies offer cyber insurance under their umbrella policy, but these shared limits often leave you exposed in the event of an attack. To truly protect your practice, you need your own set of dedicated coverage limits. Relying on a shared policy could mean that your claims are subject to the same pool as others, which may not cover the full extent of your loss.
When shopping for cyber insurance, make sure your policy includes first-party coverage. Here are the key coverages that should be included:
1. Business Income Coverage: A cyberattack can force your practice to shut down while systems are restored, causing a loss of income. Business income coverage compensates you for the income you lose during this downtime.
2. Forensic Investigation Coverage: After a breach, the Health Insurance Portability and Accountability Act requires determining how it happened and what patient data was compromised. Forensic investigations are costly but essential for identifying vulnerabilities in your systems. Ensure your cyber insurance policy covers these investigation costs so you can mitigate future risks.
3. Ransom Payments: Ransomware attacks have become increasingly common, where cybercriminals lock your files and demand payment to release them. Some policies will cover the cost of ransom payments, but be sure to verify this with your insurance provider.
4. Computer Replacement: If a cyberattack damages your systems beyond repair, you may need to replace hardware like computers, servers and other essential equipment.
5. Breach Costs: When a data breach occurs, notifying affected patients is just the beginning. You’ll also face legal fees, public relations costs and potential regulatory fines. Cyber insurance can help cover these breach-related expenses, ensuring that you can handle the fallout while keeping your practice afloat.
Don’t Settle for Basic Coverage
A basic, one-size-fits-all policy might seem like a good deal, but it may not provide the full protection your dental office needs. Make sure your policy is tailored to cover your unique risks and has the coverage limits necessary to fully support your practice in the event of a cyber incident.
Ensure Your Coverage Limits Are Adequate
When determining your coverage limits, ensuring they are at least double your practice’s monthly income is essential. Cyberattacks are increasingly leading to lengthy downtime, and the average dental office is now closed for three weeks following an attack. During this time, lost revenue can quickly add up. Additionally, the average claim resulting from a cyberattack has risen to over $100,000. Having the proper coverage limits will ensure that your practice is financially protected from prolonged downtime and the high costs of a breach.
In our next post, we’ll look at real-life examples of how cyber insurance saved healthcare providers from severe financial losses after a cyberattack.
To learn more about cyber liability insurance to help protect your practice call or text Florida Dental Association (FDA) Services Inc. at 850.681.2996 or visit FDA Services, Inc. (coalitioninc.com) for an instant quote.
Beyond the Bite 