July 18, 2025
If you've ever had to deal with a
resident fall lawsuit or a survey citation, you know insurance isn't just
paperwork—it's protection. Cyber liability insurance is the same. It's your
financial shield in a digital emergency.
With cyberattacks increasing across
healthcare, LTC facilities are now high-risk targets. Cyber liability coverage
helps pay for legal fees, data recovery, credit monitoring for affected
parties, and regulatory fines. But here's the catch—most insurers now require
proof that you're doing your part to prevent breaches.
According to the Ponemon Institute, the
average cost of a healthcare data breach is over $10 million. And the claims
process gets delayed—or denied—if a facility lacks key security documents like
a Written Information Security Program (WISP), recent Security Risk
Assessments, or a tested Incident Response Plan.
One facility near Akron had cyber
insurance but lacked a response plan. When ransomware encrypted their billing
system, they delayed reporting. The insurer investigated and found gaps in
staff training and outdated software. Only partial costs were covered. The rest
came out of pocket—it was a big unplanned expense and also came with some
uncomfortable questions from residents and referral partners.
"An
ounce of prevention is worth a pound of cure." - Benjamin Franklin
By contrast, a Columbus-based skilled
nursing provider had a clean track record of annual risk assessments, a
documented IRP, and proof of quarterly tabletop drills. When a vendor system
was compromised, their policy covered legal, technical, and communication costs
within 30 days.
"Trust
is built in drops and lost in buckets." - David Rendall
So what should your facility do?
- Review your cyber insurance
policy and make sure it covers ransomware and third-party breaches.
- Confirm that coverage limits
match your current risk profile and number of residents.
- Work with your IT partner to
document and test your cybersecurity policies.
- Store a copy of your WISP, IRP,
and past assessments somewhere accessible for claims.
If a breach occurred today, would your
insurance protect you—or deny you?
