Cyber Liability Insurance is a Necessity for Dental Practices

Not only is the risk for targeted cyberattacks high in health care, but TDIC’s Risk Management experts warn that when a dental practice is victim of a cyberattack, their business grinds to a halt. With more practices going to fully electronic business practices with, scheduling software and electronic charting and billing, it’s likely that without their data, staff can't even set up the rooms for patients. In short, being victimized is costly for unprotected dental practices.

Statistics on cyber security breaches are sobering:

• 53% of connected health care devices have vulnerable security, according to the U.S. Department of Health and Human Services. 

• Cyberattacks have increased by 400% since 2020, with an average of 364,571 healthcare records leaked every day in the U.S.
• Currently, the healthcare sector has more data breaches than any other, accounting for 32% of all recorded data breaches—almost double the number recorded in the financial and manufacturing sectors.

• In one recent cyber claim handled by TDIC, the total costs to conduct a forensic IT investigation, get systems back online and cover lost business neared $100,000. 

Are you financially prepared?

Despite the rising threat and potentially catastrophic costs of cybercrime, many small business owners – including dentists – are not prepared to prevent and financially recover from a cyberattack.

• Only 22% of small businesses have increased cybersecurity spending since 2020, even though rate of attacks is significantly higher.
• Less than 20% of small businesses have some form of cyber insurance coverage. 

• 72% of small businesses that purchased cyber insurance only did so after experiencing a cyberattack. 

Maintaining robust cybersecurity in your dental practice can help prevent cyber threats. However, when it comes to mitigating the damage of an actual cyberattack, the importance of a cyber liability insurance policy cannot be overstated. 

TDIC’s Risk Management analysts point out that many practice owners mistakenly assume that losses from cyber incidents will be covered by their business owner’s policy. Since cyber coverage is not standard to most business policies, assuming it is included in your existing policy can lead to a significant coverage gap. Contact your insurance advisor to see if you are adequately covered. 

TDIC offers a Cyber Suite Liability policy built just for TDIC Business Owner’s policyholders. 

Cyber Suite Liability coverage 

What is it? This type of policy provides tools for responding to and recovering from cyber incidents with the range of coverage varying by insurer. A TDIC Cyber Suite Liability policy goes beyond data breach. It covers the costs related to breach of information, unauthorized intrusion or interference with computer systems, damage to data and systems from computer attacks and related litigation. In most cases, general liability policies do not fully cover cyber incidents, so adding cyber coverage to your Business Owner’s policy is a good defense against the financial effects of cyberattacks. 

Who needs it? Practices of every size need comprehensive cyber protection because dental offices are particularly vulnerable businesses when it comes to cyberattacks due to handling both financial and sensitive HIPAA information. 

How does it protect you? Proactively adding cyber coverage helps protect your records, reputation and practice costs. The immediate cost of a data breach can be significant; the latent costs can be devastating without coverage. 

What should you look for in your coverage? Every state has laws that require businesses to notify consumers of data breach — as a minimum. Choosing a comprehensive, cyber-specific policy ensures you not only have the means to comply with the law, but also can protect your records and reputation while responding to and recovering from a broad range of incidents. 

In addition to financial protection, as part of TDIC’s risk management resources for policyholders, you have access to reference tools, guides and checklists for navigating cyber threats. Contact your insurance advisor to learn more about cyber liability coverage from TDIC. 

TDIC policyholders can contact the Risk Management Advice Line for additional guidance. 

TDIC’s Risk Management Advice Line is a benefit to TDIC policyholders. To schedule a consultation with an experienced risk management analyst, visit tdicinsurance.com/RMconsult or call 1.877.269.8844.