Malpractice Insurer Covers Breach Costs

Reacting to physician demand, one of the nation's largest malpractice insurers now offers coverage of expenses associated with healthcare information breaches. In an exclusive interview, Bill Fleming, assistant vice president at The Doctors Company, describes the new Cyberguard program, which provides coverage of the costs involved in: Defending cases involving unauthorized access to information; Regulatory enforcement action by federal or state agencies; Notifying patients of breaches as required under the HITECH Act; Offering patients free credit monitoring services; and Data recovery procedures. The program covers up to $50,000 in expenses per physician for no additional premium. Fleming advises physicians to minimize the risk of a breach by making widespread use of encryption, creating detailed guidelines for online communication with patients and training their staff on prevention steps.