Date Posted: Monday,
March 13, 2017
A medical billing organization's exposure is not just the potential of a billing error. Organizations that regularly handle such sensitive information as patient records have a particular responsibility to maintain the confidentiality of the data.
Failure to exercise the appropriate degree of care - whether intentional or not - can lead to a regulatory investigation or lawsuit brought against the medical billing organization for breach of confidentiality.
How can a Medical Billing and Coders Professional Liability policy respond to a Security Event?
A Security Event is defined a:
- Accidental release, unauthorized disclosure, theft or loss of personal identifiable information (PII) or sensitive personal information (SPI).
- Unauthorized access to or unauthorized use of PII or SPI that directly results in the alteration, destruction, deletion, corruption, or damage to one's PII or SPI.
Crisis Management and Public Relations Expense coverage:
A medical billing organization can elect to have their professional liability policy include coverage for expenses to protect the reputation of the insured and for corrective actions to mitigate a security event.
Example expenses:
- Hiring a public relations firm, law firm or crisis management firm to handle communications to explain the nature of the security event and corrective actions being taken.
- Retaining a 3rd party computer forensic firm to perform an investigation to determine the cause of the security event.
- Preparing and sending notifications to clients of the insured or any other party whose PII or SPI was compromised to comply with privacy regulations.
- Providing credit monitoring services to affected individuals.
Without a medical billing and coder's professional liability policy, the medical billing organizations would have to pay for these expenses out of pocket.
Please note: Always refer to the medical billing and coder's professional liability insurance policy to determine what coverages are available to you.
Fox Point Programs is an insurance agency specializing in professional and management liability product lines. You will benefit from our expansive product portfolio, fast-track processing and impressive technical expertise. We are fully licensed to transact business in all 50 states and possess the authority to write accounts on either an admitted or surplus lines basis.
www.foxpointprg.com
