In the past year, sales of cyber-insurance policies to hospitals, banks and other organizations that store and transmit private consumer data have increased 20 percent, according to the report.
South Shore Hospital in Weymouth, Mass., purchased a policy shortly after a data breach compromised the information of more than 800,000 patients and led to a $750,000 settlement. Partners Healthcare in Boston bought a policy in 2007, which paid off when a $1 million settlement with HHS that resulted from patient records being left on a commuter train was covered by the policy, according to the report.
“It was effective,” Tim Murray, Partners’ director of risk management, told the Globe.
More Articles on Data Breach:
HHS Regulations Expose Scope of Data Breach Problem in Healthcare Sector
Hackers Target Networks of Top Medical Device Makers
Olmsted Medical Center Data Breach Exposes Employees’ Information
