Review Cyber Risk Insurance, Brace for Transparency Issues
June 1, 2024
Pay attention to your policies for cyber insurance or data liability when they come up for renewal or if you are in the process of obtaining them, advises J. Malcolm DeVoy, JD, partner with the Holland & Hart law firm in Las Vegas.
“Look at them closely [when] considering getting coverage and maybe have counsel take a look at them, because the terms might be more porous than they appear,” DeVoy says. “These tend to be pretty expensive policies that can cost over $100,000 without being a particularly large organization. So you would think that you would have better coverage than you actually do.”
DeVoy urges healthcare leaders to be proactive in assessing their cyber liability coverage.
“Don’t assume that the insurance policy is going to cover you. Don’t just have your normal attorney read it over. Not that they’re not smart people, but it might be worth asking specifically for coverage counsel to give an opinion about it,” he says. “Ask, ‘Will I be protected if this were to happen?’ and lay out some common scenarios.”
DeVoy also advises healthcare organizations to brace for the Biden-Harris administration to push more transparency, as it has done with respect to nursing facilities, and specifically skilled nursing facilities.
“I think that there are certain economies of scale where you can really only run these facilities if you have a number of them. But there’s more transparency requirements that took effect with respect to disclosure in the ownership of real estate investment trusts, common ownership, going up the stream of ownership through these facilities, their management companies, the entities that own the real estate in some way, to some degree,” DeVoy says.
Once you have a big enough set of information, it is not that far to see how the government can tee that up for further action, he says.
“That could be administrative review, or they could realize that there’s commonality of ownership where a problem at one facility can suddenly spread to other facilities,” he says. “The premise is that, if the ownership of this one facility is doing it wrong, maybe the commonly owned facilities have other problems. And that’s besides the antitrust issues that could arise.”
Source
- J. Malcolm DeVoy, JD, Partner, Holland & Hart, Las Vegas. Telephone: (702) 669-4636. Email: [email protected].
Pay attention to your policies for cyber insurance or data liability when they come up for renewal or if you are in the process of obtaining them,
You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
- Award-winning Medical Content
- Latest Advances & Development in Medicine
- Unbiased Content