Hiscox USA has launched a Healthcare Information Privacy Protection product designed to address the increasing costs and potential liabilities facing healthcare professionals.
HITECH, the first federal level breach notification law, puts additional pressure on healthcare professionals when it comes to confidential data. Now all HIPAA covered entities and their business associates must promptly notify individuals if there has been a breach of their confidential data. If it relates to more than 500 individuals, they must also contact the media and Health and Human Services Secretary. For companies that share confidential information, HITECH has prompted the renegotiation of contracts to allocate the potential risk from any breach.
The product is designed for entities in the healthcare industry and organizations providing services to the sector. It includes coverage for the following:
- Costs incurred to respond to a breach of protected health information or other personal information
- Costs to defend against and resolve regulatory investigations and third party claims (including third party breach of contract claims).
Optional coverage is also available for multimedia liability, cyber extortion, hacker damage to data and cyber business interruption.
“Healthcare professionals make life and death decisions on patient care every day so it is not surprising that the risks arising from handling confidential data are sometimes overlooked. Given the rise in medical identity theft and the passage of HITECH, these risks can be a serious threat to healthcare organizations,” said Jim Whetstone, senior vice president of Technology and US Privacy Manager at Hiscox USA.
Source: Hiscox USA
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