Insurance for HealthTech

A quarter of all US data breaches play out in healthcare. Privacy and cybersecurity have never been more daunting for healthcare companies than it is in the modern world. From ransomware to DDoS attacks to costly data breaches, personalized health data is particularly vulnerable to threats because of the high volume of sensitive information.

As with any tech company, data privacy is a massive concern. But, all the while, HealthTech must also comply with HIPPA, PHI, etc. More than mere security breaches, this industry must face accidental data disclosures, human errors, and more threats—mainly from third-party vendors.

HealthTech companies face unique risks in complying with federal, state, and local regulators—which are often wildly different. Regulatory compliance increases exposure and expense in the healthcare sector. Plus, it also impacts business models significantly. Some of the compliance risks include:

• Managing various government payers
• Meeting state licensing and practice requirements
• Addressing state medical board actions
• Interpreting old regulations that are behind the times
• Complying with HIPAA

Client injuries in any industry typically mean both financial and reputational damage—and the healthcare space is no different. In high-income countries, one in ten patients is injured while receiving care, and 50% of those injuries are preventable. That said, patient injuries could happen for several reasons.

Human error, system breach, technology failure could all cause injuries, to name a few. Preventing or mitigating the aftermath of patient injuries is often a time-consuming and costly endeavor.