The healthcare industry has become a major target of cyber crime in recent years. Unfortunately, nursing home data is susceptible to hackers looking for an easy target. Sharing and transmitting information has made our lives easier but often comes at a price. While vital to any healthcare facility, improperly protected, when any of this information falls into the wrong hands it can cause personal, as well as financial and emotional harm.


Much of the data collected is highly sensitive, relates to an individual’s medical or financial information, and can be valuable to cyber thieves. Anyone working in the healthcare industry now knows there is an increased demand for better ways to protect this data. However, these hacks will certainly continue and nursing homes need cyber liability insurance to help deal with the fallout.


Electronic records face exposures and risks


Gone are the days of keeping information in a paper-based form. We live in a world that thrives on EMR (electronic medical records), and EHR (electronic health records) as a means of processing information faster and easier in a digitized format. This allows healthcare data to be quickly and easily transmitted from provider to provider, site-to-site, or even to external regulatory and billing entities. But this comes at a price.


The safest way for this data to remain secure is by the use of appropriate encryption and security measures. This must be established for all senders and receivers of the data. Sharing vital information over the Internet gives rise to security concerns since all a hacker needs to do is find a way into a computer system where this sensitive information is being stored.


Most websites developed for healthcare organizations for marketing and branding purposes are simply not very secure which makes them desirable to cyber criminals. As they gather increasing amounts of intellectual property and personal information they face many more risks and challenges. A breach can lead to costly liability claims, along with reputational damage, due to breach of privacy, infringement of intellectual property rights, and fraudulent billing, among other things.


These companies need to educate themselves about the real need for cyber liability insurance to handle certain risks detrimental to their functions.