You may have seen local or national news headlines about large cybersecurity breaches. Unfortunately, they happen all of the time. Some industries are more vulnerable than others, depending on the types of data stored and what cybercriminals have to gain from hacking into systems. Healthcare organizations have always been a major target due to all the personal data they store, such as dates of birth, medical histories, and insurance information. Senior living communities store similar information on their residents, so it’s vital that they have robust cybersecurity infrastructure.
While proactively setting up an IT system that’s safe and secure should be a top priority for senior living communities, it’s also important to have cybersecurity insurance in the rare event a cyber attack occurs.
What is Cybersecurity Insurance?
Cybersecurity insurance (also referred to as cyber liability insurance) helps cover costs associated with a cybersecurity incident if an attack occurs. It is offered by insurance companies that also cover commercial property insurance and business liability insurance.
What Does a Cybersecurity Insurance Policy Cover?
Cybersecurity insurance is a relatively new product. The coverage and prices can vary by provider, but here is a list of items that can be covered:
- Legal assistance and incident management costs such as notification fees, and credit monitoring.
- Crisis communication and public affairs
- Profit losses due to business interruption and other associated costs
- Repair and replacement of damaged equipment and restoration of software
- Compliance with ransomware demands
- Recovery of funds lost due to fraud
- Third-party losses (related to the organization)
Reasons Senior Living Communities Need Cybersecurity Insurance
Senior living communities internally store and transfer an enormous amount of sensitive data. If private information becomes exposed from a security breach, the cost of lawsuits can really rack up quickly.
Costs to notify residents of a breach
You must notify victims of a cybersecurity breach and the cost can add up if you have thousands of residents. Cyber policies typically cover this cost.
Cybersecurity breaches can cause massive disruptions to operations in senior living communities. IT systems are intertwined with day-to-day functions and serving the residents, so when it’s not in use, there’s a great potential for profit loss. Many cyber insurance policies will cover at least some portion of the loss of income as well as other expenses that result from the disruption.
Additional layer of protection
Individuals purchase car, home, and life insurance policies for the same reason it’s wise to have a cybersecurity insurance policy. It will transfer some of the risks of a cyber attack onto the insurance company, and it essentially provides a safety net when things go wrong.
What determines the Cost of Cybersecurity Insurance?
The cost of cybersecurity insurance policies depends on several factors. Here is a list of what determines the cost:
- The size of your business and community (number of residents). The more people using the IT system, the greater chance of an attack. Larger senior living communities may be charged higher premiums.
- Data amount and sensitivity. Most senior living communities store a lot of private medical information, and this makes insurance companies consider them a higher risk.
- Cybersecurity posture. Insurance companies look favorably upon senior living communities which take robust measures to safeguard their IT systems.
- Terms. As with any type of insurance, there are various limits and deductibles. Greater coverage and lower deductibles mean higher premiums and vice versa.
Take a proactive approach
It’s important to have cybersecurity insurance in the event of a cyber attack, but it’s also critical to take preemptive action to prevent one from happening. New cyber threats arise every single day in various forms, and successful attacks are costly. A full-service IT manager like RSN Technologies can help. One of our specialties is network security. We’ll protect your equipment and network from bad actors and the compromising of data for your residents. We don’t take that responsibility lightly. Reach out today and let’s start taking care of your senior living community’s cyber security needs.