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Why Cyber Liability Insurance Is Now Mandatory for Healthcare

Have you heard that healthcare is now the most targeted industry in the world, and just one cyberattack could put…

Have you heard that healthcare is now the most targeted industry in the world, and just one cyberattack could put your patients’ data and your hospital’s reputation at risk in seconds?

Here’s what you should know

  • In 2024, healthcare made up more than 40% of all cyberattacks globally, making it the most attacked sector overall.
  • A stolen medical record can be sold for more than 10 times the amount of a stolen credit card on the dark web.
  • 90% of hospitals globally had at least one cyber incident over the past three years.

Many healthcare providers underestimate the risks associated with skipping cyber insurance. Without coverage, every cyberattack hits your organisation’s finances, operations, and reputation directly.

You could end up paying millions to repair systems, recover patient records, notify affected patients and more. In addition, downtime resulting from a ransomware attack or system outage could halt surgeries and delay treatment, ultimately undermining every bit of work you have done to build hard-earned patient trust.

That’s why it’s time hospitals take cyber insurance seriously and begin investing in it today. It is like a recovery protocol that allows your hospital or clinic to continue being viable after experiencing an attack.

Mitgata: Leading Cyber Insurance Service Provider

When a cyberattack hits your hospital at 2 AM, you need more than an insurance policy. You need a partner who picks up the phone, stops the breach, and gets your systems running before morning rounds.

That’s exactly what Mitigata delivers. As India’s leading cyber resilience company, we’ve built our reputation on one simple promise: we protect you before, during, and after an attack.

Healthcare Cyber Insurance Starting at Just ₹49,000/Year*

With Mitigata, hospitals, clinics, and health-tech providers get affordable cyber coverage, and proactive protection with our free healthcare risk console.

What makes 220+ healthcare providers trust Mitigata:

  • Exclusive Access to Mitigata Console: Your 24/7 command centre for threat monitoring. See real-time alerts when phishing attacks target hospitals in your area. Track vulnerabilities in your EMR, HIS, and PACS systems. This isn’t available with any other insurer.
  • Round-the-Clock Expert Support: Real cybersecurity professionals answer your calls at 3 AM. No AI bots but actual experts who’ve handled hospital breaches, diagnostic lab ransomware, and telemedicine platform attacks.
  • Best Rates in India: Our partnerships with the country’s top insurers get you comprehensive coverage at unbeatable prices. Premium protection without the premium cost.
  • Partnerships with Leading Insurers: We work with India’s most trusted insurance providers to ensure your claims are fast and your coverage is rock-solid when you need it most.

Why Healthcare Is a Top Target for Cybercriminals

There are multiple high-value factors that contribute to why criminals focus on the healthcare infrastructure. Here’s what you need to know.

Patient records
Patient records contain full identities, including complete names, dates of birth, addresses, financial information, and health histories.
For this reason, patient records on the dark web can sell for 10-20 times the value of credit cards, as patient records can be used for health care fraud, identity theft, and blackmail.

Discover key strategies to identify and mitigate cyber risks in healthcare organisations

EHRs and mission-critical systems
Hospitals rely on EHRs to access a comprehensive patient history, which includes real-time updates on tests, lab results, and prescriptions.
Cybercriminals use ransomware to block access to these systems, which disables treatment.

Medical devices
The connected medical devices (e.g., pacemakers or insulin pumps) in diagnostic machines may be running outdated software with little to weak security.
People can gain access, hijack the device itself or the hospital network where the device may be used as an entry point.

Billing and payment data
If healthcare service providers are breached, personal data, including credit card transactions, can be exposed, resulting in reputational and financial damage.

Regulatory pressure
Healthcare laws, such as HIPAA in the United States or the DISHA law in India, recognise that even a minor breach can result in substantial penalties.

Attackers know that hospitals are often willing to hand over the demanded money to regain control of their own systems and data quickly, often to protect patient lives and avoid regulatory scrutiny.

Are you counted among those 60% of GRC users who manage compliance manually? It’s high time to check these popular automated GRC tools in India

What is Covered Under Healthcare Cyber Insurance?

Healthcare cyber insurance provides protection for hospitals, clinics, and other healthcare practitioners, covering the costs associated with the financial, legal, and operational consequences of a cyberattack.
Typical coverage is divided into categories that include:

First-Party Coverage

1. Ransom Payments
In the case of ransomware, if you cannot access your systems or patient records, the policy covers the ransom the attackers demand. This affords you the ability to retrieve access quickly, freeing you from bearing all the expense.

  1. System and Data Restoration

This covers the expense of specialists to recover or rebuild your system that was attacked, restore electronic health records (EHRs), and repair software or hardware that may have been damaged.

  1. Patient Notification and Support

Covers the cost of notifying patients after a data breach occurs, including providing credit monitoring services and informing them of the steps to take to mitigate any potential harm.

  1. Business Interruption Losses

Covers business interruption costs associated with a loss of revenue while your business recovers from the cyber attack, such as delayed surgeries, cancelled appointments, or reduced overall capacity of operations.

  1. PR and Reputation Management

Coverage includes professional and public relations expenses to rebuild public trust with its patients, partners, and community after a breach.

Don’t Let Cyber Attacks Disrupt Patient Care

Our fast-track claims process helps healthcare organisations recover quickly, backed by experts who understand medical data security.

Third Party Coverage

  1. Lawsuits from Patients or Partners
    Covers legal fees and settlements if your patients sue you as a result of a breach of your electronic data.

    2. Regulatory Fines and Penalties
    Healthcare organisations must follow the strict regulations like HIPAA. If a breach occurs and a regulator imposes fines, having this type of coverage helps you pay those fines. It ensures compliance-related penalties don’t bankrupt your facility.

    3. Legal Defence Costs
    Cyber incidents commonly raise a variety of legal matters. Cyber insurance will cover attorney fees, court costs, and litigation support, allowing you to focus on restoring your operations without worrying about escalating legal bills.

Discover key strategies to identify and mitigate cyber risks in healthcare organisations

What’s Often Missing From Healthcare Cyber Insurance Policies

Even the most strong policies can leave gaps. Many healthcare providers discover these too late:

  • Social engineering and phishing scams:
    The attackers may send an email that looks like it’s from a trusted executive or a vendor, asking the employee to transfer funds or expose credentials. Some healthcare cyber insurers will classify this incident as fraud instead of hacking and might deny the claim. Make sure you look into it before you sign a policy.
  • Supply chain breaches: If your lab software or EHR system is hacked, your hospital may lose access to data or service could be interrupted. Most policies contain a downstream exclusion for a breach, unless you add vendor liability coverage.
  • Regulatory penalties: Healthcare must strictly follow the standards and regulations of HIPAA. Some fines are excluded if you were found non-compliant with data laws. If your insurance policy doesn’t cover regulatory fines, you will have to pay them yourself.
  • Delayed triggers: Some insurance companies won’t start paying right after a cyber attack takes place; they have a waiting period, so any losses that occur during that period will be your responsibility to bear.

Healthcare Cyber Insurance Backed by Industry Experts

With best-in-market pricing, Mitigata provides end-to-end cyber protection —covering data breaches and regulatory risks at SMB-friendly costs.

How to Choose the Right Cyber Liability Insurance for Healthcare

Choosing the right cyber liability insurance policy for healthcare involves more than just comparing costs. The following factors should be taken into account while choosing a policy:

  • Incident Response – Does the policy provide comprehensive breach support, from investigation to notification of patients? If your systems are attacked with ransomware. A policy with incident response covers IT experts, public relations services, and communication sent to the patients.
  • Legal Defence and Regulatory Coverage – Make sure that the cyber liability insurance policy you choose covers lawsuits, settlements, and regulatory fines.
  • Vendor Liability – Check whether the breaches resulting from your cloud provider or the electronic health record vendor are covered. Suppose a data breach occurs within the vendor software provided by your hospital’s third-party lab system. In that case, cyber insurance should be able to support reimbursement for losses associated with compromised data.
  • Phishing and Social Engineering – If your policy does not cover loss due to these types of attacks, then your hospital would be responsible. Suppose an employee accidentally shares login credentials in a phishing email that appears to be from a trusted source. If you do not have coverage for these incidents, your hospital would have to absorb the expenses involved.
  • Waiting Periods – Some insurance policies are only triggered after a specified waiting period. Any losses during that time are your responsibility. Make sure you know the waiting period of the insurance policy.

Learn how to smoothly handle a cyber insurance claim with Mitigata’s step-by-step guide

Conclusion

A cyberattack can stop patient care, breaches can erode trust, and downtime can be expensive. Strong IT security is part of the equation, but it doesn’t protect you from lawsuits, fines, or recovery costs. Cyber liability insurance closes those gaps and protects your patients and operations.

But the real question is, can your healthcare organisation afford to operate without it?

Your patients trust you with their lives, and Mitigata helps you protect your data. Over 800 organisations trust Mitigata to safeguard them from cyber threats.
Get a customised healthcare cyber insurance quote from Mitigata today.

Janardhan N

Janardhan is a seasoned growth marketing expert with over 8+ years of experience in performance marketing. With a strong track record of driving brand growth via strategic content strategies, he has helped multiple businesses elevate their online presence and achieve measurable results.

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