As information is digitized in healthcare, there's greater risk in the transmission and storage of confidential medical and financial information.
To cover these risks, Premier Insurance Management Services, Inc., a for-profit corporation wholly owned by Premier, Inc., has launched a new data privacy and network risk liability product for healthcare facilities.
Available to members of the Charlotte, N.C.-based healthcare alliance, the product integrates first- and third-party coverage into a single convenient policy form and offers coverage that's typically excluded from other liability insurance policies.
Premier officials said the offering not only covers risk, but enhances the value by including coverage for special proactive risk management, crisis management and public relations services.
"We're offering a unique, comprehensive suite of services to respond to data breaches," said Robert Dowdy, Premier Insurance Management's president. "Such problems will only get worse no matter how careful we are or how sophisticated we make our data protection systems. We continue to grow ever more dependent on wireless networks, laptops, the Internet and other Web-based technologies to conduct our business and transmit highly confidential information."
Premier Insurance Management is partnering with Media/Professional Insurance of Kansas City, Mo., to offer the new product.
In addition, the nationally recognized Internet, communications and data protection group of the national law firm Sonnenschein Nath & Rosenthal LLP will provide policyholders with risk management and planning advice, consultation and education.
Data security breaches include lost or stolen laptops, backup tapes lost in transit, hackers, employees stealing information or allowing unauthorized access, internal security failures, flawed business practices, viruses and improper information disposal.