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Physicians Insurance Offers Data Compromise Endorsement to Protect Members' Medical Practices and Patients from Data Breach Events


Physicians Insurance A Mutual Company announced will provide member corporate and solo physician policyholders a data compromise endorsement for up to $50,000 in coverage for the forensic investigation, notification to victims, credit monitoring service for victims, and identity restoration case management for identity theft victims. Beginning May 1, 2010, eligible policyholders can automatically receive the coverage for the remainder of the calendar year. The coverage will be renewed at the beginning of 2011, and applies to data compromise acts that occur within the legal confines of the medical practice as the custodial entity of the personal data.

The Small Business Technology Institute reports that more than one-half of all U.S. businesses experience a security breach of personal identity information annually. Most all states, including Washington, Oregon, and Idaho, have enacted laws that require small businesses to promptly notify customers that their personal information may have been compromised. The cost for notification alone is estimated at $100 per person. The cost to repair reputational damage when patients sever relationships with physicians due to data breaches can be exorbitant.

Data compromise coverage applies to breaches of private, non-public data in a business’s (medical practice’s) custody or control. This includes information such as drivers’ licenses, credit account information, Social Security numbers, medical records, and other private data. Events that classify as data breaches include:
  • Theft of electronic files
  • Theft of physical files
  • Accidental loss or inadvertent information release
  • Voluntary information release due to fraud
Physicians Insurance is now providing data compromise coverage with an annual aggregate of $50,000. The coverage includes a $5,000 sublimit for outside legal counsel and forensic IT review. A $2,500 deductible applies for each claim. Higher limits are available for qualified members.

The Physicians Insurance data compromise insurance coverage goes beyond cyber identity theft. “If a clinic employee steals hard copies of patient records and sells them to a medical or credit fraud thief, it’s covered under this endorsement,” says Susan Peskura, associate vice president of marketing at Physicians Insurance. “We want our members to rest assured that the bulk of what’s associated with the investigation, victim notification, credit monitoring for victims, identity restoration for victims, and coaching on how to deal with it is covered under this endorsement.”

The broad coverage definition includes data compromise coverage for electronic, physical, procedural (mistakenly disseminating personal information), and fraud-related acts. Corporate and solo practitioner policyholders will have an opt-out opportunity to decline the coverage.

“With the annual premium so low, we’re confident that our insureds will be very receptive to this new coverage,” Peskura says.

For more information about the Physicians Insurance data compromise endorsement, or to discuss opting out, or to ask about higher limits, please contact your broker or marketing representative. Contact your marketing representative at (206) 343-7300, 1-800-962-1399, or marketing@phyins.com.
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For all media inquiries, please contact:

David Kinard
Marketing and Communications
206-343-6618 or david@phyins.com



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