The Importance of Higher Limits on Cyber Insurance

The Importance of Higher Limits on Cyber Insurance

We recently read an article from Medical Economics, emphasizing the prime reason small practices need higher limits on Cyber Insurance. Please feel free to review the information we found beneficial, and share it with your small business clients. 

Sohan Dua, M.D., received the bad news in a phone call one morning in February 2017: his practice had been hacked.

The Electronic Health Record  (EHR) system shared by Dua and his wife, Kiran Dua, M.D., had been breached and hackers were holding their patient data for ransom. That attack sent the couple, who practice in Northridge, CA, on a protracted and painful experience that cost their separate practices time, money and service interruption.

Dua, a Nephrologist, never thought he and his wife, a Primary Care physician, would join the ranks of healthcare providers and organizations that have suffered crippling cyber attacks. Luckily, their losses were at least partially covered by the combined $100,000 cyber coverage they had through their medical malpractice insurance carrier. The insurance carrier also provided the Duas with a team of experts to help in the recovery from the attack.

However, even with that assistance, the Duas’ practices were forced to shut down for several months while they dealt with the attack. “We still don’t know how much money we lost,” Dua said. “We lost patients, too.”

The growing threat of being hacked has more Primary Care physicians buying Cyber Insurance. But what those policies cover, how they work, and how much they cost are mysteries to many healthcare providers, most of whom are only familiar with malpractice and business insurance.

What Cyber Insurance Does

Cyber Insurance covers losses and damages resulting from patient data being stolen, exposed, held for ransom, or improperly shared. It covers deliberate actions, such as hacking or ransomware, as well as accidents, such as a lost laptop containing unencrypted patient information or a coding error that accidentally exposes patient data.

A comprehensive policy will cover paper records as well, since large amounts of information are still stored in physical files. Cyber Insurance helps providers deal with the consequences of data breaches, which can range from relatively minor to catastrophic. The assistance provided can include:

  • Paying regulatory fines and penalties
  • Compensating for loss of income from downtime or lost patients
  • Hiring IT experts to find and fix the breach
  • Hiring a call center to handle inquiries from patients
  • Hiring a public relations firm to deal with unwelcome publicity
  • Hiring attorneys to represent the practice in any lawsuits filed by patients (as well as any damages awarded)
  • Paying ransom to free hijacked data.

 

In short, it covers almost any loss or expense that can be attributed to the data breach.

For example, the Duas’ coverage helped them when they were forced to write off tens of thousands of dollars in uncollected billing due to unrecovered patient payment records, a loss that Dua estimates at $40,000 to $50,000.

A complete policy includes first-party and third-party coverage. First-party coverage pays for damages suffered by the policy holder, such as lost revenue, business interruption, IT forensics and data restoration. Third-party coverage compensates for damages caused to others by the data breach, such as the legal costs incurred from lawsuits filed by affected patients.

Practices that haven’t bought Cyber Insurance often have some coverage through their malpractice or general business policies, but it’s usually limited to about $100,000 or less in damages and contains exemptions.

How Much Does It Cost?

The cost of a Cyber Insurance policy varies, depending on the carrier, the size of the practice, and the extent and amount of the coverage, experts say. The larger the practice, the greater the risk and the more it can expect to pay.

The good news is that Cyber Insurance is less expensive than malpractice and liability insurance. A typical five-physician Primary Care practice should have at least a $1 million umbrella cyber policy.That coverage could cost anywhere from $1,200 to $5,000 a year.

A Team Response

When shopping for Cyber Insurance, practices should investigate exactly what help they will receive in case of a breach. Unlike a fire, managing a data breach often requires the help of a team of experts, not just a check to cover damages. Depending on the nature and size of the breach, that team can include lawyers, forensic accountants, IT experts, publicists and call center operators, among others.

Besides the coverage itself, the real benefit of Cyber Insurance is being able to turn over management of the crisis to a carrier with experience in data breaches. Once an insurer is notified by a policyholder of a breach, the situation is assessed and a decision is made on the corrective actions that need to be taken to prevent further damage and deal with the aftermath. The insurer hires vendors and contractors to provide the necessary services.

For example, a lawyer will handle HIPAA notification, while IT specialists locate and fix the breach and a PR firm writes the notification to patients whose data has been affected. The decision whether to pay ransomware is up to the practice, but the insurer typically recommends a course of action and handles any payment, if one is made.

In the Dua’s case, their insurance provider, The Doctors Company, employed a computer forensics company to determine the extent of the breach and a law firm that specializes in privacy issues to determine if HIPAA notification was required. “They were a lot of help,” Dua said. “We did not know how to handle everything that needed to be done.”

Electronic Health Records  And Partners

Patient data is exchanged between practices, insurers, hospitals, and labs every day. The more places data is stored, the more vulnerable it is to attack and accidental disclosure. Even a practice that is not targeted directly can be liable for data lost by a partner or vendor. For example, in April, the state of New Jersey levied a fine of nearly $418,000 against Virtua Medical Group, a physician network, after a vendor error left the records of more than 1,650 patients visible online.

Many data breaches are going to involve EHR systems, and while the electronic records providers usually work with IT experts to find and fix the breach, it does not mean the vendors are legally or financially responsible, experts say. Many practices expect their EHR system to handle breaches or pay for damages and that’s not always the case.

Small Does Not Equal Safe

Healthcare data breaches are rampant. In a 2017 survey by the AMA and Accenture, 83 percent of physicians reported experiencing some sort of cyber attack, though not all resulted in breaches. Cyber criminals target healthcare organizations because their data contains patient names, birth dates, addresses, social security numbers, credit card numbers, and health insurance information.

Whether the hackers use the information themselves or sell it to others on the black market, stolen identification and fraudulent activity is committed. That is why healthcare data is more valuable than even credit card records.

Physicians in small Primary Care practices who think they would not be a worthwhile target for hackers should look at the U.S. Department of Health and Human Services (HHS) list of reported breaches of healthcare information.

https://ocrportal.hhs.gov/ocr/breach/breach_report.jsf

Among the giant health insurers, government agencies, and large hospital systems, are medical practices that found out the hard way that they, too, can be targeted: a multiple physician Cardiology practice in Knoxville, TN.; a solo Primary Care physician in Weston, FL.; a solo Internist in Scottsdale, AZ.; and many more.

In fact, a practice might be targeted specifically because it is small. Attacks on small practices were uncommon five years ago, but that is no longer the case. Some hackers will test and refine their methods on small practices before going on to attack larger targets, such as healthcare systems. A new kind of attack is occurring, an attack which isn’t after a practice’s data or patient information, but rather the  computing power to earn digital currency. Attackers have hijacked practice servers  for pseudocurrencies, like Bitcoin. Users might be unaware that the reason their computers are operating so slowly is that they’re running the complex calculations to reap the currency. This goes to show that the motivation to attack small businesses will always be there. For those that say they haven’t been targeted, they simply haven’t been targeted yet.

If you need further information about Cyber Insurance, click here.

The Starstone Advantage – Excess on Allieds & Senior Care

Starstone Excess

Starstone’s Excess Product on Allieds & Senior Care

Starstone Specialty Insurance Company (formerly Torus), highlights their recent Excess Limits product for surplus lines accounts. Starstone has been upping their game and are boasting very quick turn-around times, flexibility and competitive pricing, and with coverage in all 50 states, it’s easier than ever!

Part of the Enstar Group –  with their “A – ” (Excellent) rating by A.M Best, you can be rest-assured they have the backing and financial stability to provide tailored coverage  options to all their small and middle-market clients. Starstone’s claims philosophy is similarly on-point and consists of fighting for an early resolution when possible, and being transparent in their customer focused service to minimize a client’s service disruption in an event of a claim.

Who is Eligible?

For Allieds:

  • Home Health Care
  • Healthcare Staffing Firms
  • Substance Abuse Facilities & Behavioral Health
  • Urgent Care & Ambulatory Surgery Centers
  • Rehab Facilities
  • * And more!

For Senior Care:

  • Skilled Nursing Facilities
  • Assisted Living Facilities
  • Independent Living Facilities
  • Supplemental Exposure – including Home Health visits & Adult Day Care Participants

 

Product Highlights

For Allieds:

  • Premiums start at $3K (for $1M limits)
  • Claims Made Form
  • Limits up to $5M

For Senior Care:

  • Limits up to $5M
  • Follow form XS or High Excess
  • Up to 5 facilities or 500 beds

 

What to Submit?

  • Current loss runs for PL (Professional Liability), GL (General Liability) and AL (Auto-Liability) as needed
  • Underlying Binders and Policies
  • Underlying Quotes for PL, GL and AL when available

 

P.S. Excess is also available for individual physicians or group practices too. Underlying coverages on GL, AL, Employers Liability and Sexual Misconduct are also available.

Don’t see the class or info you need listed? Find out more on this great product! Contact your favorite HPSI Producer today by e-mail or call us at 678-935-5040.  

Trust HPSI to Navigate Your Risk.

Exclusive MSO Insurance Product with Ironshore

Ironshore

HPSI is excited to announce a new Exclusive Ironshore Product on Managed Care (MSO) Liability Insurance

Healthcare consolidation represents both the greatest threat and greatest opportunity for healthcare insurance firms and those operating in that space. In the last few years, we’ve seen many retail agents losing market share as premiums continue to decline, small practices continue to merge or get acquired, and large systems take on more risk. Others are benefiting – seizing opportunities to grow with their clients and staying ahead of emerging risks.

Staying ahead is key, and to help our best partners thrive in the new era of value-based healthcare, HPSI is pleased to announce this new program with Ironshore! It’s designed to protect large medical practices and management service organizations (MSO’s) from a variety of risks, some of which may not properly be covered.
Read below, and for more information on policy highlights and coverage details please contact our resident expert, Brian Kern, J.D. for more information on this brand new product! Brian Kern can be reached at bkern@hpsi-ins.com or by calling our office at 678-935-5040.


HPSI Ironshore MSO Product Marketing Flyer

Cannabis Insurance Coverage – from Kinsale

Cannabis Coverage

Kinsale’s Cannabis Appetite – Insure Your Cannabis Risk!

The word “Cannabis” (another name for Marijuana) has been floating around in the Insurance space for a few years now. Increasing changes in laws across several states that allow for legalization is on an upward trend. Some predict that by 2020 many states will have some form of legalized usage, and it will be a $21 Billion industry. With 2020 right around the corner (and with no idea where all that time has gone!), we think it’s prudent to give some information on Kinsale’s well-rounded Cannabis coverage product.

Federal law currently prohibits doctors from prescribing Cannabis, but they can recommend it, and weirdly enough some states require it. Suffice to say, the exposure of this risk is still in the exploratory phase as use and sale continues to expand. Evolving delivery methods can put clients at risk in new ways. Is a patient ordering it through your client’s App? Watch out for that telemedicine exposure! Kinsale is dedicated to keeping abreast of all these changes and more to adopt their coverage to match your client’s needs.

Insurance Coverage Available for Property, Casualty & Specialty Risks

Eligible Risks:

  • Dispensaries, Retail outlets, & Ancillary products
  • Processors & Laboratories
  • Medical, Food, Drink Supplemental Manufacturers.
  • Biotech Companies in Pain Management
  • Clinical Trials & Product Liability
  • Cannabis Hospitality Business (Bakeries/Café’s/Conventions)
  • Security Firms serving Cannabis businesses
  • Medical Marijuana Evaluation Clinics & Individual Practitioners Providing Evaluations

Coverage Features:

  • Property Primary – $5M to $10M/ Excess – Limits up to $15M
  • Property Ground Up – Limits up to $15M
  • Casualty – Occurrence and Claims-Made, Minimum premium starts at $2,500, Defense Inside
  • Specialty – Allied Health Premiums start at $3,500, Claims-Made
  • Specialty – D&O, EPL, shared or separate limited, Premiums start at $15K
  • Specialty – Professional Liability, premiums and deductible start at $5K

Underwriting Details:

  • Can do carve outs for physicians doing marijuana on the side – minimum premium starts at $2,500
  • Financial liability coverage is available (dependent on state’s law)
  • Product Recall Coverage – can provide a small sub-limit depending on the risk
  • Environment Impairment Liability – can provide site coverage
  • No package deals (aka Property would be a separate quote than Professional Liability)

What is NOT Covered:

  • States where there is no legalization in place
  • No Crop coverage! Inventory must be off the plant
  • No Crime form
  • Coverage excludes willful violation of the law
  • No Hedge funds or Venture Capital funds (but exceptions may be considered)

Kinsale has made it their mission to know the ins and outs of the Cannabis laws in each state. Maybe you already have a client that has some of this exposure, or perhaps you are just tapping in to this new market!  Either way, HPSI can help you find the coverage your client needs.

Contact one of your trusted HPSI Producers for a quote today! Trust HPSI to Navigate Your Risk. Call us today at 678-935-5040.

Hartford Insurance Company’s BOP & Cyber Bundle

Hartford BOP

We’ve come with information from out latest Q&A session with Hartford on their BOP product coverage!

A BOP policy, or a Business Owner’s Policy, essentially combines business liability insurance with business property into one convenient package. Many Carriers offer coverage for this class of risk, so we’ve put together a little cheat sheet of what Hartford does differently to compete in today’s fast moving market.

What does a policy with Hartford bring?

  1. Broad Coverage Form

Which translates to a lesser need for Endorsements! How does this work?

This means that ancillaries and extra coverage options that clients always tack on after binding, are already included in Hartford’s broad coverage form – saving you time and your client money down the road! Let’s be honest here, BOP policies are not the heftiest of accounts, so a hassle free policy with great coverage can save more than a few stones.

2. Competitive Pricing for their Broad Coverage

3. Quick turn-around time with their user friendly Online Quoting System

4. New ! Robust Cyber Bundle

Ability to customize the cyber coverage to fit your client’s needs. Need just data breach protection? 1st & 3rd party options? Done! As part of their bundle,  you can get a host of different coverage options.

And don’t forget that you can enhance your BOP policy if you need data breach protection for up to $500K limits on 1st Party coverage, and $1M limits on 3rd Party!

Is your Client not sure what Cyber they need? Hartford Underwriters and our team of Producers are experienced and well versed in procuring the coverage and customizing the policy for your client!

We could go on and on about Hartford’s A-rating, financial stability, and 200+ years of experience, but you’ve heard the spiel before. So let’s stop the talking and start the writing!

Contact our resident BOP guru, John Malejko@ jmalejko@hpsi-ins.com, your preferred producer, or call us at 678-935-5040 for a quote today.

Trust HPSI to Navigate Your Risk. 

 

 

CNA’s Southeast Appetite – Insurance for Aging Services Orgs

Aging Services

CNA’s Aging Services Insurance

As always, we keep our ears to the ground to get the latest news for our Agents. The latest from CNA we were surprised to learn is their Aging Services appetite!  Since the demands for the Aging Services market are expending, comprehensive coverage is needed by a company who understands this particular market fully and extends its coverage options to fully accommodate the risk factors.

Well the good news is that not only does CNA understand it, (based on their extensive claims analysis & research), they are actively seeking out those accounts!  They have pin-pointed what causes the most claims and are continually working with providers on promoting quality care and increasing safety standards.

CNA’s current Aging Services appetite is focused on expanding in the Southeast region – Georgia, South Carolina, Alabama & Tennessee.

Types of Risk they cover for Aging Services:

  • Independent Living Facilities
  • Assisted Living Facilities
  • Life Planning Communities
  • Faith based organizations & Not-for-profit organizations
  • Stand-Alone Nursing Homes (less than 500 beds)
  • Home Health Care (that’s part of the facility)
  • Facilities in growth areas (rural, etc.)

Underwriting Details:

  • No Minimum Premiums set
  • Standard Limits ($1m/$3m or as needed)
  • $0 Deductible Options
  • Incident Sensitive, Defense Outside
  • Multi-line coverage to reduce any gaps (PL/GL/EBL)
  • Can add Auto & Property Coverage!
  • Umbrella & Excess available
  • Risk Consultants and Resident Fall Prevention programs
  • Occurrence coverage available in certain areas
  • Medical Directors covered (admin duties only)

Contact us to send in a submission! We have dedicated Producers & Production Staff that will work hard to get competitive quotes for your risk. Visit us at www.hpsi-ins.com or call us at 678-935-5040.

Trust HPSI to Navigate Your Risk. 

 

 

Things We’ve Noticed – News on Market Going-ons

What we have Noticed

Review on What We’ve Noticed in the Market Today.

As the end of summer is nigh and the 7/1 rush has now become the 9/1 rush, we want to take this time to update you on a few things we’ve noticed with certain classes.

At HPSI our Producers stay on top of market intelligence to help place your accounts faster and with the best company that has the price, service and coverage form to fit your client’s needs.

Trust HPSI to Navigate Your Risk.

Non-Physician Owned Clinics – This is a growing class of business, only limited by a particular state’s law.  Coverage is available for Allieds and as well as Physicians who supervise via chart review or as medical director in these situations. We have multiple Carriers willing to cover this risk!

Premium can start as low as $1,500 (for limited personnel)

Examples we see: Medspas, Anti-Aging, Weight loss, Urgent Care, Rehab, Physical Therapy, Walk-in, etc.

Available in most states.  Contact us to get a great quote!

Locum Tenens  –  Another class to look out for! Locums Staffing companies for Allieds and Physicians are on the rise. Providers are drawn to the flexibility this type of work offers and the need for staffing services has been steadily increasing within the medical sphere.

Hard to Place Classes
But we can help!

Midwives – Carrier options have certainly dwindled for this class of Allied Providers over the last 5  years. Premiums are much higher with fewer competitive options to choose from, and stand-alone coverage without supervision is harder to place.

Correctional Medicine – We’ve noticed this market hardening up substantially!  Fewer Carriers are writing it, and the few remaining are charging higher premiums and equally high deductibles.

Look out for more pieces on “Thing’s We’ve Noticed” to come, featuring recent success stories and other industry transitions and trends happening in this space, + more on what we are expanding to write.

Writing New Business – Access to Great American!

Great American Access

The New Business Hustle – Aiming to write more with Great American!

We are all hustling to write more new business. More new business this year is fodder for our renewals next year and hopefully the year after. Do you have year-end goals you need to meet? Well, we are in the same boat my friend, trying to stay afloat until high tide comes rolling back again.

At HPSI we are driven to evolve and offer new Products and Markets to fit the current needs of our clients, and maybe offer some that are not anticipated, but nevertheless needed just the same.

Here is where I bring you up to speed with our latest market, Great American. With Great American, we can write not just your E&S Property policies, but also your:

  • Social Service Agencies
  • Churches
  • Educational Institutions
  • Physical Fitness Centers
  • And more!

Great American writes the business policies of more than 200 classes of human and social service organizations in addition to the Property and Inland Marine coverage we normally go after. They have great coverage, and have been  “A” rated by A.M. Best for over 100 years and counting. You can trust your clients will be getting a great financially reliable Insurance Carrier with dedicated claims specialists to assist in their time of need.

P.S. And don’t forget! Writing more new business is always great for a healthier bottom line for everyone. What do you see what you need Markets for? Talk to us and let us know!

Trust HPSI to Navigate Your Risk.

And remember to send us those submissions! We write more than just med-mal nowadays and have dedicated staff with the know-how to place the coverage. Contact one of your favorite HPSI Producers today by e-mail or call us at 678-935-5040. What can we help you write today?

Vela Insurance Services – Charting the Course

Vela, charting the course

Vela Insurance Services

Tailored Insurance, Proven Financial Strength & Great Quotes!

 

At HPSI we notice a thing or two, and after over 25 years in business, we pick up quickly on who’s offering a great deal, and as always, want to share that knowledge with our trusted agents.

What have we noticed with Vela?

1) Medical Directorship coverage

You may have a more than a few options for this coverage, but did you know that Vela is very competitive on this risk?

  • Average premium ranges between $2,000 and $3,500.
  • Includes both Admin and Collaborative (indirect patient care) coverage

2) Expert Witness Coverage

An interesting fact! Expert witness coverage is not covered by a regular malpractice policy due to the financial loss exposure of this risk. For example, an expert witness can be sued for negligence for an alleged error made which ended up causing a financial loss for the attorney’s client due to an adverse court verdict.  For this exact reason, your client’s malpractice policy may not be sufficient.

  • Average premium runs around $2,500, $1M limits

(Dependent on the frequency of testimony provided)

Does your Insured plan to be an expert witness in a case? Vela Underwriters are experienced and well versed to provide the coverage your client may need!

Keeping our Agents informed is just one of the many great services we provide here at HPSI. We keep up with the trends, so that you in turn can keep your clients happy and satisfied with their coverage and price!

Contact your favorite HPSI Producer today to get a competitive quote! Trust HPSI to Navigate Your Risk.