High-profile attack highlights importance of cyber insurance

identity theft cyber insurance
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Community Health Systems files comment with federal government concerning recent data breach

Tennessee’s Community Health Systems, an operator of acute care hospitals, has filed a statement with the federal Securities and Exchange Commission concerning a recent data breach that compromised patient medical files. The organization’s hospitals store patient information digitally in order to ensure that this information can be accessed more easily. Digitizing these records can be a risky practice because of the complex and unpredictable nature of cyber attacks.

4.5 million people may have been affected by the cyber attack

In its statement, Community Health Systems notes that whatever financial loss it will see from the recent data breach will be modest due to its cyber insurance protection. The company has noted that it has incurred some expenses concerning remediation, government inquiries, litigation, and various other issues. Community Health Systems has not commented on the full extent of the costs associated with the data breach. The information of some 4.5 million patients may have been compromised by the attack, however.

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Attack again brings cyber insurance into the limelight

identity theft cyber insuranceCyber insurance is becoming more important for businesses, especially those that deal in very valuable consumer information. This type of insurance coverage can provide a safety net for businesses that are targeted by cyber attacks. The problem, however, is that the insurance industry is still not well versed in digital risks and many insurers have had trouble offering adequate protection in this space.

Community Health Systems will provide identity theft protection services to those affected by attack

Community Health Systems believes that the data breach may have occurred in April and June of this year. The organization has been working with Mandiant, a cyber security firm, to track down those responsible for the matter. The firm suggests that the attack came from a group based in China. This group made use of sophisticated malware and technology in order to access the records kept by Community Health Systems. The organization will be offering identity theft protection for those being affected by the data breach, per the terms of its cyber insurance coverage.

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