New Chubb Insurance Solution for Health Care Organizations Provides Coverage for Data Breaches and Health Care Fraud
WARREN, NJ, August 27, 2012 – The Chubb Group of Insurance Companies has introduced insurance coverage to help small to mid-size health care organizations
manage some of their biggest exposures.
ForeFront Portfolio 3.0SM for Health Care Organizations offers eight optional coverages, including cyber liability insurance for the costs associated
with data breaches and directors and officers liability (D&O) insurance, which can respond to allegations of health care fraud
and abuse. The six other coverage options include employment practices liability, fiduciary liability, crime, kidnap/ransom
and extortion, workplace violence expense, and employed lawyers liability insurance.
“Many health care organizations are not adequately prepared to fend off a data breach, which exposes them to fines and penalties
of up to $1.5 million per year under the Health Information and Technology for Economic and Clinical Health Act,” said Beth
Strapp, vice president and health care product manager for Chubb Specialty Insurance. “ForeFront Portfolio’s cyber liability
insurance can provide customized coverage for crisis management and privacy notification expenses, data breach-related fines
and penalties, and legal defense costs.”
Increasingly, health care organizations also are being accused of filing fraudulent claims with Medicare and Medicaid, Strapp
added. ForeFront Portfolio’s D&O insurance may cover defense costs and certain fines and penalties as a result of an investigation,
subpoena, search warrant or other types of inquiry into such an allegation, regardless of whether a civil lawsuit is filed.
“This is an important feature of Chubb’s new insurance product since coverage is triggered under most other insurance policies
only when a civil proceeding is brought,” said Strapp.
Chubb’s health care insurance solution also includes access to a variety of loss prevention services. The online Health Care
ZoneSM at ChubbWorksSM offers risk management information and tools to help reduce D&O, employment practices liability and fiduciary liability exposures.
Cyber liability customers are able to access Chubb’s eRisk Hub, an online cyber risk management platform. They also can obtain
partial reimbursement for costs associated with hiring a Chubb-approved cyber loss prevention consultant. Similarly, employment
practices liability customers can be referred to appropriate loss prevention experts and receive a partial reimbursement of
those costs. Crisis management services are available to help manage a workplace violence, kidnap/ransom or extortion incident.
The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property
and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb’s
global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.