In 2024, the healthcare industry continues to be a prime target for cybercriminals, with attacks on clinics, hospitals, and healthcare providers becoming increasingly sophisticated and frequent. As healthcare entities store vast amounts of sensitive data, ranging from personal patient information to critical medical records, the repercussions of a cyber attack can be devastating. For clinics, hospitals, and healthcare providers, cyber liability insurance is not just a safeguard—it is a necessity.

The Healthcare Cybersecurity Landscape in 2024

Healthcare organisations are particularly vulnerable to cyberattacks due to several factors:

• Legacy Systems: Many hospitals and clinics still use outdated systems that are more vulnerable to breaches.
• Valuable Data: Personal health information (PHI) is highly sought after by cybercriminals, with stolen healthcare data being used for identity theft, insurance fraud, and even ransom demands.
• Operational Impact: A cyber incident in healthcare doesn’t just mean financial loss—it can result in delayed treatments, compromised patient safety, and even medical malpractice claims.

Real-World Examples: How Cyberattacks Are Crippling Healthcare Providers

1. University of Manchester Cyberattack (June 2023)

A ransomware attack on the University of Manchester affected NHS patient data from over 200 hospitals. Sensitive information, such as NHS numbers and partial postal codes, was compromised. In addition to the risk of identity theft, the breach raised significant concerns over patient privacy and the NHS's ability to protect this critical information.

This attack underscores the importance of having insurance coverage for both data breaches and the associated legal ramifications. If compromised, data results in lawsuits or regulatory fines (e.g., under the UK’s GDPR rules), cyber insurance policies can cover these costs​^[1].

2. Synnovis Pathology Lab Cyber Incident (June 2024)

Synnovis, a pathology lab responsible for processing NHS blood tests, was hit by a ransomware attack that resulted in the lockdown of critical systems^[2]. As a result, hospitals in South East London faced significant disruptions, with delays in receiving blood test results and the postponement of elective procedures. Beyond operational havoc, the attackers claimed to have released sensitive patient data, sparking fears of identity theft and further exploitation​^[3].

In this case, the effects of the ransomware attack extended beyond IT downtime—it created reputational damage for Synnovis, led to patient safety risks, and affected healthcare delivery. A comprehensive cyber liability insurance policy would cover the costs of business interruption, data restoration, and legal defence against any claims made by affected patients.

3. NHS 111 Cyber Incident (August 2022)

A cyberattack targeted software used by the NHS 111 service, causing significant outages across several healthcare providers. The disruption impacted community hospitals, mental health services, and patient assessments. Incorrect prescriptions and delays in mental health evaluations resulted from the downtime, exposing the NHS to medical malpractice claims stemming from compromised patient care​^[4].

The fallout from this incident illustrates the need for insurance that doesn’t just cover technical recovery but also extends to medical malpractice claims triggered by cyber events. Healthcare providers cannot afford to overlook the fact that a cyber breach may lead to incorrect diagnoses, treatment delays, or medication errors, all of which could form the basis for costly lawsuits.

Why Cyber Liability Insurance is Essential for Healthcare Providers

Cyber liability insurance offers a lifeline in the event of a cyberattack, covering:

• Data Breach Costs: From ransomware demands to the costs associated with notifying patients and regulatory bodies after a breach, insurance can mitigate these immediate financial burdens.
• Business Interruption: A cyberattack can bring operations to a halt, leading to significant revenue loss. Insurance policies can cover the financial gap caused by these interruptions.
• Medical Malpractice Claims: In today’s interconnected world, cyber incidents can have direct implications on patient care. If a patient suffers due to a breach (e.g., if a ransomware attack locks critical systems and causes delays in treatment), your policy can cover the resulting legal claims.
• Fines and Penalties: Under GDPR and other privacy laws, healthcare organisations face hefty fines for data breaches. Cyber insurance can help cover these costs, which can otherwise be crippling for a healthcare provider.

The Unique Approach of Medicas

At Medicas, we recognise the complex risks faced by healthcare providers. As a Lloyd’s of London broker specialising in healthcare, we have access to some of the world’s largest cyber insurers. What sets us apart is our ability to blend multiple coverages—cyber liability, medical malpractice, and technology E&O (errors and omissions)—into one comprehensive policy. Often, purchasing standalone policies leaves critical gaps. For example, a clinic might have cyber insurance but not realise that it does not extend to medical malpractice claims arising from a cyber incident. Our all-encompassing approach ensures that you are covered from every angle, minimising exposure to unforeseen risks.

Cyber Insurance: Not Just a Safety Net, But a Strategic Investment

Cyber liability insurance is no longer optional for healthcare providers. Given the current cyber threat landscape, failing to secure adequate coverage exposes your clinic or hospital to significant financial, reputational, and legal risks. Whether it’s a ransomware attack that locks critical systems, a breach that exposes sensitive patient data, or a cyber event that leads to medical malpractice claims, the right insurance coverage can provide both peace of mind and financial stability.

By investing in a robust, blended insurance policy, healthcare entities can focus on their primary mission—delivering excellent patient care—without the fear of catastrophic financial consequences.

If your clinic, hospital, or healthcare practice has yet to consider cyber liability insurance, now is the time to act. Contact Medicas to learn how we can customise a policy that fits the unique risks your organisation faces in today’s digital age.

References

[1] https://www.independent.co.uk/news/health/nhs-patient-data-attack-b2364202.html

[2] https://www.england.nhs.uk/2024/06/synnovis-cyber-attack-statement-from-nhs-england/

[3] https://www.england.nhs.uk/london/2024/07/25/update-on-cyber-incident-clinical-impact-in-south-east-london-thursday-25-july/

[4] https://www.independent.co.uk/news/health/nhs-patient-data-attack-b2364202.html

Disclaimer

This post is for general information purposes only and does not constitute financial advice. Servca Group Limited (trading as Medicas) is authorised and regulated by the Financial Conduct Authority (FCA).