As physicians adopt patient electronic medical records and share these records among different health care providers, they are facing an avalanche of new regulations with potential civil monetary fines. Added to HIPAA will be the Health Information Technology for Economic and Clinical Health (HITECH) Act, enacted to secure patients’ personally identifiable information and their health information.

Traditional property and liability insurance typically do not cover these exposures. Rather, a tailored insurance response is required to address the varied risks now emerging.

Scenarios like the following are happening every day:

• The physician's laptop containing a listing of patients is lost or stolen
• A disgruntled employee steals patients' credit card information
• A virus shuts down the Electronic Medical Record for weeks
• The physician is fined after a patient complaint under HIPAA

Additionally, these emerging threats include data breaches which are becoming more frequent and more sophisticated, resulting in greater damage to a physician’s reputation and to the financial health of the practice. CAP membership now includes a CyberRisk Liability program at no additional charge, administered by CAP Physicians Insurance Agency, Inc. The program provides $50,000 in coverage, as well as a web-based risk management tool to help identify and manage your risk.

You will have the full $50,000 limit of liability available for third party actions and regulatory fines and penalties. The expenses related to patient notifications of up to 5,000 records would not erode the limit. Most data liability plans do reduce the amount of coverage as these expenses are paid, so your plan is of greater value. In order to manage your risks to avoid potential claims, the web-based risk management tool will answer many of your questions as well as outline steps you may take to protect your practice.

CyberRisk provides coverage for the following areas of your practice:

• Multimedia Insurance – Coverage for both online and offline media. Includes claims alleging copyright/trademark infringement, libel/slander, advertising, false advertising, plagiarism, and personal injury.
• Security and Privacy Insurance – Coverage for third party claims alleging a financial loss as a result of a network security or privacy breach. Includes coverage for both online and offline information, virus attacks, denial of service, and failure to prevent transmission of malicious code.
• Privacy Regulatory Defense and Penalties - Coverage for defense costs and fines/penalties for violations of privacy regulations including but not limited to HIPAA, Red Flag Rules, and the new HITECH Act.
• Network Asset Protection – Coverage for all reasonable and necessary sums required to recover and/or replace data that is compromised, damaged, lost, erased or corrupted. Coverage also includes business interruption and extra expense coverage for income loss as a result of the total or partial interruption of the insured’s computer system. Includes coverage for cyber terrorism.
• Cyber Extortion - Will pay extortion expenses and extortion monies as a direct result of a credible cyber extortion threat.
• Cyber Terrorism - Coverage for income loss and interruption expenses as a result of the total or partial interruption of the insured’s computer system due to a cyber-terrorism attack.
• Privacy Breach Response Costs and Crisis Management (Public Relations) Expenses - Includes all reasonable legal, public relations, advertising, IT, and forensic expenses.
• Customer Notification Expenses and Customer Support Expenses - Coverage for notification expenses including, but not limited to, call center, credit monitoring and postage expenses incurred by the insured for a privacy breach.

Although the CyberRisk Program, provided by the Cooperative of American Physicians, Inc. (CAP), provides $50,000 in coverage, this primary limit may not provide all of the protection your practice may need. Through CAP Physicians Insurance Agency, Inc. you may purchase excess coverage with limits of $1 million to further protect you.

If you purchase these excess limits in combination with MEDEFENSE Plus excess policy, to cover administrative liability such as Medical Board of California disciplinary proceedings, allegations or alleged regulatory non-compliance, you may earn a multi-policy discount.

To purchase additional CyberRisk coverage, please complete this application and submit via fax to 213-576-8560.

To learn more about these coverages, please contact one of our professional agents listed below at CAP Physicians Insurance Agency, Inc., a wholly owned subsidiary of CAP.

Deidri Hoppe
dhoppe@CAPphysicians.com

Alfred De Leon
adeleon@CAPphysicians.com

Diana Leoncio
dleoncio@CAPphysicians.com

You may also call us at 800-819-0061.