Enhancements Added to SVMIC Cyber Security Insurance

By James E. Smith, CPCU
January, 2017

Cyber Security Insurance Coverage with a limit of $50,000 was first added to SVMIC’s physician and practice entity policies as of January 1, 2015.  This supplemental insurance was added at no additional charge and covers privacy breach response costs; cyber extortion expenses; security and privacy liability; network asset protection; cyber terrorism expenses; multimedia liability; and privacy regulatory defense expenses.

During the first two years of this coverage, SVMIC received 67 cyber-related claim reports—a majority of which were related to privacy or security breaches. These resulted in legal expenses; computer forensic and investigation fees; and patient notification expenses.  There were also ten data loss or digital assets loss claims and five cyber extortion claims.

As of January 1, 2017, the Cyber Security Insurance has been enhanced to include: 1) loss of revenue from an adverse media report and/or notification to patients of a security or privacy breach (“Brandguard”); 2) Payment Card Industry Data Security Standard (PCI DSS) Assessment coverage; and 3) the privacy breach response coverage now provides for proactive response expenses to a breach before an adverse media report in order to mitigate the damage to the practice’s reputation.

For a more complete description of these coverages, visit SVMIC’s website or call SVMIC at (615) 377-1999.  In addition, please call for more information on higher limits that are available for an additional premium.

James E. Smith, CPCU

About the Author

Jim Smith is Senior Vice President of SVMIC. He received a Bachelor of Science degree from Jacksonville State University in 1975 and earned the CPCU designation from the Society of Chartered Property and Casualty Underwriters in 1989. Jim’s career began as a claims adjuster with Liberty Mutual Insurance Company. In 1991, Jim was recruited by SVMIC as Vice President of Underwriting, where he has been since. He was promoted to Senior Vice President in 2012. Mr. Smith served as a member of the Underwriting Section of the Physician Insurers Association of America (PIAA) from 1990 to 2009, and was its chairman from 1993 to 2001. He is a member of the Professional Liability Underwriting Society (PLUS), and briefly served on its Industry Review Panel.

The contents of The Sentinel are intended for educational/informational purposes only and do not constitute legal advice. Policyholders are urged to consult with their personal attorney for legal advice, as specific legal requirements may vary from state to state and/or change over time.