In 2024, cyber threats are no longer limited to large corporations—veterinary practices are increasingly becoming targets for cybercriminals. Around 11,000 veterinary practices experience a data breach each year, and the average cost of a breach has now surpassed $4 million. The impact of a cyber-attack can be devastating for your practice. Cyber insurance offers vital protection, helping you manage the financial repercussions of incidents like data breaches and ransomware attacks, while also supporting a quick recovery.
What Is Cyber Insurance?
Cyber insurance helps cover the costs associated with incidents like data breaches or ransomware attacks, including:
- Notification costs to clients and pet owners
- Data recovery and IT support
- Legal fees and regulatory fines
- Business interruption and lost income
- Reputation management
- Credit monitoring for affected clients
- Ransom payments (depending on your policy)
Cyber insurance is typically divided into two categories: first-party coverage, which covers your practice’s direct losses, and third-party coverage, which addresses claims made by clients, vendors, or business partners.
Do You Need Cyber Insurance?
While cyber insurance isn’t legally required, it’s an essential safeguard for veterinary practices facing growing cyber risks, such as phishing scams, ransomware, and potential regulatory penalties. Strong cybersecurity practices are crucial, but insurance provides a financial safety net if those measures fail.
Requirements for Cyber Insurance
To qualify for cyber insurance, your veterinary practice needs to show that you are taking cybersecurity seriously. Insurers typically require the following:
- Basic Security Measures: Firewalls, antivirus software, and multi-factor authentication (MFA).
- Employee Training: Proof that your staff receives regular cybersecurity training to minimize human error.
- Incident Response Plan: A well-documented plan for managing data breaches and restoring operations.
- Routine Security Audits: Regular assessments to identify and address vulnerabilities in your systems.
- Identity Access Management (IAM): Tools to manage and monitor access to sensitive data, such as client medical records.
- Documented Cybersecurity Policies: Clear guidelines on data protection, password management, and access controls.
By meeting these requirements, your veterinary practice can qualify for cyber insurance coverage that offers robust protection.
Conclusion
Cyber insurance is a vital tool for managing the financial risks of cyber threats. By preparing your practice with the right security measures, you can simplify the process of obtaining coverage. For help assessing your cybersecurity posture, contact us for a free risk assessment at 703-968-2600.
Protect your practice, your clients, and their pets by ensuring you’re covered in the face of rising cyber risks.