Healthcare providers face increasing cyber risks as more adopt electronic medical records and data breaches rise within the healthcare industry. In 2016, Catholic Health Care Services lost $650,000 after a data breach exposed sensitive information of 412 individuals. An investigation found they lacked risk analysis and management plans. Comprehensive cyber insurance can help providers mitigate risks of data breaches, IT attacks, identity theft, and more by covering costs of recovery, regulatory defense, privacy liability, and crisis management. Gallagher's cyber liability solutions are tailored for healthcare providers, including benchmarking, analytics, and specialized coverage.

1. Healthcare Providers are at
risk, now more than ever.
In July 2016, Catholic Health Care Services of the Archdiocese of
Philadelphia (CHCS) lost $650,000 due to a data breach of 412
individuals. Sensitive information including their Social Security
numbers, information regarding diagnosis and treatment, medical
procedures, names of family members and legal guardians, and
medication information were compromised. The Office of Civil Rights
(OCR) conducted an investigation and concluded that the CHCS “had
no risk analysis or risk management plan.” As the number of physicians
and healthcare providers using electronic medical records increases,
coupled with the drastic rise in hacking and IT data breaches within the
healthcare industry, it is imperative to be prepared, informed, and insured.
As the number of malicious cyber-attacks and data breaches
increases year over year, the prevailing thinking of physicians
and other healthcare providers in regards to cyber risk has
now become “When will it happen to us?”
WHAT CAN GALLAGHER DO FOR YOU?
Our exclusive relationships make it possible to do
business with carriers that offer products such as
HIPAA-Enhanced Cyber protection,which provides
coverage for not only data breaches, but ID theft, cyber
extortion, and loss of revenue due to malicious attacks. It can also include cost
of recovery as well as damages to the reputation of the insured. There are
some provisions that providers may overlook such as regulatory defense costs,
security and privacy liability (including liability to employees and customers
in the event of theft of data), and crisis management costs, including costs of
customer notification, support, and credit monitoring expenses. We will
provide you with the mostappropriate plan to help ensure that you are
properly covered in all facets of your business in order to mitigate risk.
Our consultative approach with clients can provide
you with a personalized plan of action - from loss
prevention methods to claims management. Our
resources have been deployed to all types of clients
within the healthcare industry, from the leaders of Medical Group
Management Associations (MGMAs) to individual service providers.
Our team offers specialized solutions, including benchmarking and
analytics to help you make informed decisions to improve your
business efficiency. We focus on your risks, so you can focus on your
business.
© 2016 Arthur J. Gallagher & Co.
All rights reserved. Gallagher
C y berLiability Practice
% Of Health Providers using Electronic Health Records
Source: HealthIT.gov
Data Breaches of Unsecured Health Information
Source: HealthIT.gov
Gallagher Cyber Liability Practice
Tim Hoover
580 Route 15, Suite A
Sparta, NJ 07871
973.300.4216
Tim_Hoover@ajg.com
www.ajg.com/cyber
As credit card security measures
tighten, hackers are setting their
sights on health records.