How Captive Insurance Safeguards Patient Privacy in Medical Practices
The recent article published by Medical Economics, “How Captive Insurance Safeguards Patient Privacy in Medical Practices,” by Chris Gallo, Managing Director at CIC Services, highlights how the healthcare industry is facing a growing threat of data breaches and ransomware attacks, with 295 breaches in the first half of 2023, impacting millions of patients. Small to mid-sized private medical practices are particularly vulnerable to the financial and reputational consequences of such incidents, as they often lack the resources of larger institutions. Data breaches can erode patient trust, disrupt operations, and lead to costly legal challenges. To address these risks, captive insurance, which involves creating a specialized insurance company for a group of affiliated organizations, can be a valuable tool. It allows medical practices to tailor insurance policies to their specific cybersecurity needs, providing coverage for data recovery and restoration expenses, and incentivizing better data security practices.
