How Network Security and Medical Malpractice go Hand in Hand

How Network Security and Medical Malpractice go Hand in Hand

Insurance experts nationwide are increasingly seeing a growing liability dealing with private patient medical information being digitally accessible from the internet. The concern over the perceived lack of network security has grown large enough that many medical malpractice insurance companies are finding that they must offer physicians the option to purchase network security insurance as well. Some medical malpractice insurance carriers are even going as far as offering cyber liability as part of the malpractice policy package to begin with.

Reportedly, the government has been pushing for physicians, hospitals, and clinics to put electronic medical recordkeeping best practices in place. Electronic medical records (EMR) systems are very expensive to put in place and often require continued monthly expenses and computer support, which is why many healthcare facilities may be hesitant to utilize them. However, many officials feel that electronic medical records are imperative, and have even suggested offering a tax break for those healthcare facilities that do choose to utilize them. In addition, using these EMR systems could potentially reduce the risk of Network Security exposure.

Privacy and network security breaches can result in lost or misused patient information, which can easily lead to a medical malpractice lawsuit. Other potential law suits that could severely affect the finances of a medical facility include lawsuits from individuals for ID theft, breach of privacy, or a class action lawsuit if many people are affected. Even if your clients’ facility or practice does not require privacy and network security insurance, it’s wise for them to invest in this coverage.

PL Risk Advisors provides Professional Liability Insurance products for a number of professionals, including those in the healthcare field. In addition, we understand that all industries and companies could face the risk of a privacy or network security breach. Please contact us today at (855) 403-5982 for more information about our programs.