Multiply your practice’s total number of client
records by $214. Now imagine writing a check for this amount and losing this
money off your bottom line. Can you afford to pay this as an out-of-pocket
expense? According to a study from the Ponemon Institute, the average data
breach cost per individual compromised record is $214.
Program is pleased to announce a new product to protect you and your practice
against data breach exposures.
What is it?
A breach is defined
as an event in which personally identifiable information (PII) is potentially
put at risk – either in electronic or paper format. Data breach coverage
responds to loss, theft, accidental release, or accidental publication of PII.
Personally identifiable information includes:
- Full name
- Social security number
- Bank account number(s)
- Driver’s license number
- Credit or debit card
Every time you accept a check, debit card, or credit card
payment from a client, you have PII in your possession, and you could be held
responsible for a hacker stealing this information. Or consider your exposure to
HIPAA privacy rule violations if someone accessed your employees’ PII. Data
breach coverage applies to both electronically stored data and hard copy paper
What does the insurance cover?
- Data breach insurance
provides coverage for:
- Legal and forensic services
relations and crises management
- Notification expenses
and liability expenses
And, policyholders will have access to risk
management resources that you and your staff can use everyday to minimize the
chance of a breach – not just when you have a claim.
Do I need it?
Yes. While most veterinarians are now exempt from compliance with the Red
Flags Rule, you could still be held accountable for a data breach. Not only
could your clients sue you for being affected by a breach, but you also have the
expense of repairing your practice’s name and integrity.
this scenario: Cyber thieves plant a malware software program on your
computer. As a result, every time one of your clients pays for veterinary
services with a credit card, the credit card information is automatically sent
to another party half-way across the world. Months later, after a number of your
clients filed claims with their credit card companies for fraudulent charges,
one of the credit card companies calls you because a cyber investigator tracked
the breach to your veterinary practice. Now what do you do? Post a public
notification? Alert all of your clients who paid with a bank or credit card in
the past six months? How does this affect your practice’s professional
How much does it cost?
Coverage is available
through the PLIT-sponsored business insurance carriers as an endorsement to a
package policy (underwritten by The Hartford) or as a stand-alone policy
(underwritten by CNA). The premium pricing is based on your practice’s annual
sales and varies depending on your desired liability limits and coverage
structure (third party liability, endorsement or stand-alone policy, etc).