The computer systems used at pharmacies contain a lot of pertinent information. Not only do these programs note the pharmaceuticals and other prescription items that are in stock, but they also hold quite a bit of information on the customers who frequent the pharmacy. With so much crucial information available, it’s no wonder that cyber criminals often target these systems.
With data breaches on the rise, how can you keep your customer’s information safe? This is where cyber liability insurance comes into play.
What Happens During a Data Breach?
You’re probably familiar with cybercrime, having seen it on the news when large corporations have their systems hacked and data is stolen. This can easily lead you to think that these criminals only hit larger companies, not smaller ones, like your pharmacy. However, this is incorrect. Smaller companies are easier for hackers to hit because many of them lack proper database protections.
What Could Be Exposed During One of These Breaches?
Your customers’ personal data could be stolen, including their names, addresses, identification numbers, payment methods, insurance info, and most importantly, their medical information. Releasing the records of their medications and overall medical conditions can violate HIPAA, leaving your pharmacy in trouble. What you do next, including notifying your customers of the problem, can be rather expensive. Thankfully, you have a cyber-liability insurance policy. You do have a cyber-liability policy, right?
How Cyber Liability Insurance Works
A cyber liability policy, which can be packaged with your other business and specialty pharmacy policies, is designed to help your business after an encounter with a cybercriminal. What do these policies do? They can pay for:
A New Secure System – The first thing that you’ll need to do is ensure that hackers can’t get back into your pharmacy’s system. Setting up a new system or taking steps to add further security protocols to your existing one can be pricey, so it’s good that your cyber liability policy may cover them.
Informing Your Customers – All of your customers need to know about the hacking incident. You need to send them emails and letters, possibly send out press releases or use other means to alert the media, and more. You also have to do something to make it up to your customers, such as offering them a year’s worth of credit monitoring. These things all cost money, which your cyber liability insurance can help with.
Paying Fines or Fees – Pharmacies are unique, as they hold the medication records of numerous patients. Because of this, you may have to pay a fine for violating HIPAA, as well as any additional fees that go along with it. Your cyber insurance policy may cover these expenses as well.
Reputation Harm – No one wants their pharmacy to be known as “the one that got hacked.” Why? Because then some people won’t trust your pharmacy. Thankfully, cyber liability insurance might cover PR designed to rebuild your company’s reputation.
Have Questions? Contact Charlotte Insurance
Want to learn more about cyber liability insurance for pharmacies? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your pharmacy needs.