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Tuesday, May 28, 2013

Healthcare providers increasingly investing in data breach insurance

Category:   Secure File Transfer

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As the potential threat of data breaches continues to grow, more healthcare providers are turning to data breach insurance as a means of reducing risk, iHealthBeat recently reported.

"Healthcare is the space where I see the most people talking about data breach insurance," noted Sam Cattle, security practice lead at GlassHouse Technologies, the news source reported.

Doug Pollack, chief strategy officer at ID Experts, told the news source that he believes that more than half of large hospitals either have a data breach insurance policy already in place or are considering acquiring one. Smaller care providers have not followed suit, which he believes may be a mistake.

"It's an unfortunate thing: they are less likely to buy insurance, but just as likely to have a significant data breach incident," he said, according to the news source.

As iHealthBeat noted, firms that purchase data breach insurance can essentially transfer a portion of the risk of these occurrences to a third party, thereby achieving a degree of protection.

However, it is important to note that a hospital which experiences a data breach will still quite possibly face legal repercussions, as well as as experience damage to their reputations. This can greatly impede the organization's ability to provide service to patients in the future.

That is why even those healthcare providers that invest in data breach insurance must also acquire robust data protection solutions, such as a high-end managed file transfer (MFT) program. Such a resource can provide excellent security for files as they transferred within and between hospitals, thereby greatly reducing the risk that the hospital's information will be inadvertently exposed or stolen by malicious cybercriminals.