Cyber Risks & Complying with HIPAA: What You Need to Know

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Cyber Risks & Complying with HIPAA: What You Need to Know

Cyber Risks & Complying with HIPAA: What You Need to Know

Posted by on Dec 12, 2014 in Blog News

Does My Business Need Cyber Liability Insurance?

As a business owner labeled as a covered entity through the Health Insurance Profitability and Accountability Act of 1996 (HIPAA), you must comply with both the privacy and security rules. Covered entities under HIPAA include health care providers, health care clearing houses, and health plans. HIPAA was put in place to create a federal standard regarding the privacy of health information and the appropriate way to use and discuss this information.

Unfortunately, when it comes to cyber attacks and complying with HIPAA, business owners and covered entities must be diligent and obtain cyber liability insurance. Since HIPAA covers patients, not covered entities, you must be prepared and have sound patient information handling procedures to reduce risks. Mishandling a patient’s sensitive information can lead to fines or even a hefty lawsuit that could put your organization in financial harm. The Ponemon Institute released, Cost of a Data Breach Survey, which shows exactly how costly these incidents can be, with the average cost of an organization data breach reaching $5.4 million.

If a data breach does occur, it is imperative that you take immediate action and inform the state’s public health department. Failure to do so can make for a costlier experience indefinitely. Additionally, HIPAA makes you responsible for notifying all affected parties of the data breach. If the data breach affects more than 500 of the state or jurisdiction, you are required to make an announcement in the media explaining the incident.

There is no way to predict a data breach, but there are ways to plan and prepare so that you can handle the situation with ease. Serving Goleta, Santa Barbara, and surrounding cities, contact Brown & Brown Insurance Services of California, Inc., for all of your business insurance needs. Please do not hesitate to give us a call if you are worried about your organization’s security. We have the knowledge and expertise to protect your business against a cyber attack.