Arch Insurance Group, a member of Arch Capital Group Ltd., has launched a specialized healthcare professional liability product in the U.S called Net Protection PLUS / Regulatory Defense PLUS coverage, which will be available on select Arch Healthcare policies.
According to Kevin O’Brien, Senior Vice President, who leads Arch’s Healthcare Liability Facilities unit; “As more patient data is stored and shared online, in email, and on mobile devices, there is greater risk of accidental and malicious exposure of their personal information. In addition, the government is increasing their enforcement of HIPAA and HITECH regulations, exposing healthcare organizations to significant fines and penalties should there be a breach of protected health information (PHI).”
The coverage includes eight specialty coverages at no additional charge, including Net Protection Plus cyber liability coverage and Regulatory Defense Plus for government billing audit expenses and fines, with a sublimit of $50,000.
The key features of this product include:
- Multimedia Liability - Coverage for third party claims alleging copyright/trademark infringement, libel/slander, advertising, plagiarism and personal injury. Includes coverage for both online and print media.
- Security and Privacy Liability - Coverage for third party claims alleging a financial loss as a result of a network security or privacy breach. Includes coverage for both online and print information, virus attacks, denial of service and failure to prevent transmission of malicious code.
- Privacy Regulatory Defense and Penalties - Coverage for defense costs and fines/penalties for violations of privacy regulations, including but not limited to, HIPAA and HiTech Act.
- Privacy Breach Response Costs, Patient Notification Expenses and Patient Support and Credit Monitoring Expenses - Includes coverage for reasonable legal, public relations, advertising, IT forensic, call center, credit monitoring and postage expenses incurred by the insured for a privacy breach response.
- Network Asset Protection - Coverage for reasonable expenses and costs required to recover and/or replace data that is compromised, damaged, lost, erased or corrupted. Includes coverage for business interruption and extra expenses incurred as income loss as a result of the total or partial interruption of the insured’s computer system.
- Cyber Extortion - Coverage for extortion expenses and extortion monies as a direct result of a credible cyber extortion threat.
- Cyber Terrorism - Coverage for income loss and interruption expenses as a result of the total or partial interruption of the insured’s computer system due to a cyber terrorism attack.
- Regulatory Defense PLUS - Coverage for defense costs, shadow audit expenses, and regulatory fines and penalties resulting from civil investigations or proceedings brought by a government entity or commercial payer alleging erroneous billings, civil investigations or proceedings brought by a qui tam plaintiff under the False Claims Act or as a result of the Insured’s voluntary self-disclosure to a government entity. Includes coverage for EMTALA and Stark proceedings.