In 2023, your residential care facility for the elderly (RCFE) probably relies on technology, at least to some extent. Most facilities now turn to software systems to organize key information about their residents, from their emergency contacts to their schedules for medication.
Ultimately, the likelihood is high that you’re digitally storing personal details about your residents. Using tech tools can make life easier for your team, enabling them to best serve your residents. But it does open you up to risk.
Fortunately, to protect your RCFE against threats like a data breach, you can turn to cyber insurance.
Cyber Insurance 101
Cyber insurance, also called cyber liability insurance, protects your RCFE against fallout if something goes wrong with your privately held data that isn’t your fault. When paired with other liability coverages — like general liability and physical and sexual abuse liability coverage — you get a robust way to protect your facility.
Cyber insurance, specifically, steps in when you face unwelcome scenarios like data breaches and cyberattacks. If the information your RCFE digitally stores gets accessed by an unwanted party, this type of insurance helps you bounce back. And since the average data breach costs the breached company $4.45 million, this is a place you definitely don’t want to take any risks.
To further safeguard your RCFE, pair your cyber insurance policy with best practices to help you limit your risk. While the right insurance goes a long way toward helping you avoid a hefty cost in the event of a cyber issue, any data breach or cyberattack is still a headache.
To help you avoid that, we recommend digging into resources from:
First-Party vs. Third-Party Coverage
The Federal Trade Commission (FTC) recommends that as you shop for cyber insurance, you consider both first and third-party coverage.
First-party coverage directly protects your RCFE. With this insurance in place, you generally get coverage for the cost of recovering or replacing stolen data, along with lost income due to the business interruption. But that’s not all. First-party coverage also steps in to clarify your notification obligations (i.e., you’re generally legally required to notify someone if their data was compromised). And it can help to cover the cost of those notifications, plus fines and fees you might be required to pay.
Third-party coverage, on the other hand, steps in when a third party brings a claim against you because of the cyber issue. If someone sues you, for example, this type of cyber insurance can help to cover not just the cost of litigation, but also any applicable settlement(s).
Ultimately, there’s a lot to consider when it comes to protecting your business against digital risk. Fortunately, we can help.
If you’re ready to protect your RCFE against digital threats, cyber insurance is a great place to start. To talk to the RCFE coverage experts about what kind of cyber insurance policy might best serve your specific facility, don’t hesitate to call our team at (805) 413-5668.