A few years ago, getting cybersecurity insurance for a medical practice was mostly a matter of filling out a form and writing a check. That’s no longer true. Insurers have paid out enough healthcare ransomware and breach claims to know exactly which security gaps lead to losses – and they’ve adjusted their applications accordingly.
Practices that haven’t reviewed their security posture recently are often surprised by what today’s applications ask for – and by how a claim can be denied after the fact if the answers on that application weren’t accurate.
What Insurers Are Actually Asking For Now
Cybersecurity insurance applications for healthcare organizations have grown considerably more detailed, and increasingly ask about controls that were optional recommendations just a few years ago:
- Multifactor authentication on email, EHR access, and remote access – often a hard requirement, not a bonus question
- Endpoint detection and response (EDR) rather than traditional antivirus alone
- Immutable, tested backups isolated from the production network
- A documented incident response plan, specifically covering breach notification timelines
- Evidence of regular security awareness training for staff, particularly around phishing
An inaccurate answer on a cybersecurity insurance application – even an honest mistake – can be grounds for an insurer to deny a claim after a breach occurs.
Why Healthcare Applications Get Extra Scrutiny
Healthcare breach claims tend to be larger and more complex than those in other industries, given HIPAA notification requirements, potential OCR investigations, and the value of patient records on the black market. Insurers price and underwrite accordingly, which means healthcare practices are often held to a higher technical bar than a similarly sized business in another industry.
Getting Ready Before You Apply (or Renew)
The practices that get through underwriting smoothly – and avoid an unpleasant surprise at claim time – are the ones that treat the application as a real audit of their environment, not paperwork to get through quickly. Reviewing your actual controls against what insurers are asking for, before you apply or renew, is far less painful than finding the gap during a claim.
Renewing Your Cyber Policy Soon?
Schedule a complimentary consultation and get a clear, no-pressure look at whether your practice’s controls match what insurers now require.