How HITRUST Speeds Up and Improves Cyber Insurance Approval

Why Do Healthcare Businesses Need Cyber Insurance?

Cyber insurance protects healthcare businesses from the financial impact of data breaches, ransomware attacks, and other cybercrimes. Healthcare organizations are prime targets for cyberattacks due to the large amounts of sensitive data they manage, such as protected health information (PHI). 

Since healthcare breaches can cost around $10 million on average—the highest of any industry—having insurance helps cover expenses like remediation, legal fees, and damages owed to affected parties.

Unfortunately, underwriters find it difficult to assess the risks healthcare companies face accurately. Mainly because of the complexity and volume of sensitive patient data they handle. This is why healthcare companies have to meet stringent requirements before they can get coverage. 

For example, if your organization suffers a data breach, regulatory bodies like the Office for Civil Rights (OCR) and your insurance provider will demand proof that you took steps to mitigate the risk before and after the incident. 

How Does Having a HITRUST Certificate Affect Your Cyber Insurance Approval?

A HITRUST certification helps you demonstrate that your organization follows strict data security standards. This helps cyber insurance underwriters with third-party risk management. In other words, it helps them trust that you manage risks well and makes the approval process smoother and quicker.

I.S. Partners’ Director for Healthcare Compliance highlights the critical role of HITRUST certification for protection and cyber insurance pursuits, 

You’re also more likely to secure better rates or terms, such as a low premium. This is especially true for HITRUST-certified companies beyond healthcare, such as those in IT, manufacturing, retail, and finance. 

What Are the Benefits of Cyber Insurance?

Cyber insurance acts as a financial safety net, protecting businesses from the fallout of data breaches, ransomware, and other cyber threats. Beyond covering losses, it supports recovery efforts, helping organizations quickly get back on track.

The benefits of cyber insurance include:

1. Reduced Likelihood of Cyber Incidents 

Many insurance providers require organizations to follow strict cybersecurity protocols and undergo regular risk assessments to qualify for coverage, which reduces the likelihood of breaches. 

According to the HITRUST 2024 Trust Report, 92% of r2-certified organizations remediated 92% of controls that didn’t fully address the HITRUST CSF requirements within one year of getting certified. 

As a result, only 0.64% of HITRUST-certified environments experienced breaches in 2022 and 2023. 

2. Financial Protection From Cyber Incidents

The healthcare industry remains the most expensive sector for data breaches, with an average cost of $9.8 million per incident. This figure is nearly $3 million higher than the second most affected industry—finance—where breaches average $6.1 million. 

Cyber insurance helps organizations cover these massive costs, including legal fees, remediation efforts, and compensation for affected individuals. Without this protection, health businesses risk devastating financial losses.

3. Support for Data Recovery and Remediation

When a cyberattack occurs, recovering lost or compromised data is expensive and time-consuming. Cyber insurance often includes coverage for data recovery services, which helps organizations restore systems quickly. 

Many cyber insurance policies also provide access to specialized cybersecurity teams who help mitigate damage from an attack. These experts assist with containment, forensic investigation, and identifying the source of the breach. 

Having access to these resources helps companies respond faster and focus on where it hurts first. This reduces disruptions to your business.

4. Regulatory Compliance and Legal Support

In healthcare, regulatory fines for non-compliance following a breach can be in the millions, which can cripple companies. Cyber insurance helps cover fines and penalties for failing to comply with data protection laws like HIPAA or GDPR. 

However, coverage is typically valid only in certain circumstances, such as when an organization has shown an effort to comply with regulations before the breach.

What Is HITRUST Cyber Insurance?

HITRUST has released a new cyber insurance product for organizations that have completed the HITRUST r2 Validated Assessment. It makes the insurance process easier for HITRUST customers and helps them qualify for coverage through the company’s Results Distribution System (RDS). 

The RDS provides assessment results to insurers through an API, which increases the efficiency of the underwriting process. It will soon expand to include companies with HITRUST i1 and e1 certifications.

What Are the Top Cyber Insurance Providers?

There are a lot of options in the cyber insurance market. Here are five you should consider:

1. HITRUST Cyber Insurance

HITRUST offers cyber insurance in collaboration with Trium Cyber. It is available only to companies that comply with HITRUST’s Common Security Framework (CSF)—which covers 97% of all threat indicators identified by the MITRE ATT&CK framework—and have an r2 Validated certification. 

99.4% of HITRUST-certified environments reported no security breaches in 2022 and 2023. This low breach rate shows the effectiveness of the HITRUST framework and how businesses that implement these security principles can protect their operations against potential breaches. 

2. Chubb

Chubb provides tailored insurance policies for businesses of all sizes. Their coverage scales according to the scope of risk and comes with flexible premium options. The company’s policies include protections like:

• Incident response
• Business interruption
• Data recovery
• Cyber extortion

Plus, Chubb has multinational cyber programs in over 35 countries with the support of a dedicated global services team. These teams, along with a network of local incident response professionals, provide coverage that helps businesses manage cyber risks on a global scale. 

3. AIG

With over 24 years of experience, AIG covers institutions with above-average risks and provides them with insights, analytics, and tailored coverage. The company’s policies cover the following: 

• First-party losses, such as business interruptions and data restoration
• Third-party liabilities, including legal expenses and regulatory fines

AIG’s CyberEdge® platform also provides comprehensive protection, including 24/7 access to a cyber hotline, real-time alerts for vulnerabilities, and expert claims handling through a global network of specialized legal and forensic companies. 

4. Beazley

Beazley is recognized as a leading provider of cyber insurance specifically tailored for healthcare providers. Their policies are designed to address the unique risks faced by healthcare organizations, including compliance with the HIPAA and HITECH regulations. 

Beazley offers coverage for data breaches, cyber extortion, and regulatory compliance assistance, making it a strong choice for healthcare institutions seeking comprehensive protection.

How To Obtain Cyber Insurance Fast

While it’s difficult (if not impossible) to get cyber insurance fast, here’s what you can do to get an insurance that’s in your favor: 

1. Assess Cyber Threats

Start by asking yourself where your vulnerabilities are. Do you know which areas of your network are most exposed? What would be the fallout if they were compromised? Once you’ve pinpointed these risks, prioritize them based on severity and likelihood. 

This will improve your security and show insurers that you understand your risks and are actively managing them—which makes you a more attractive candidate for insurance.

2. Develop and Update Cybersecurity Policies

Once you’ve identified your risks, the next step is to formalize how you’ll address them. Do you have clear cybersecurity policies in place? 

These policies should outline how your organization plans to protect sensitive data, respond to incidents, and train employees on security best practices. Here are some you must develop: 

• Network security policy 
• Data management policy 
• Access control policy
• Password management policy 
• Remote access policy 
• Removable media policy 
• Incident response policy 
• Vendor management policy 

You also need to add instructions to ensure these policies remain up to date over time. Regularly reviewing and updating your policies ensures they address current threats and follow industry standards. This shows insurers you’re serious about security.

3. Implement Cybersecurity Measures

After you’ve developed your policies, you need to implement cybersecurity measures. Usually, a cybersecurity company will help you create policies and implement them, but if you’re doing everything in-house, make sure you’re using: 

• Up-to-date software—To avoid attacks that take advantage of old vulnerabilities 
• Firewalls—To protect your network and control traffic
• Data backups—To make sure you still have data on hand if something goes wrong
• Multi-factor authentication (MFA)—To add an extra layer of protection

When it comes to access, you want to follow the principle of least privilege. Only give employees access to the data and systems they need to do their jobs. This helps you reduce the risk of information leaks.

You can also take it a step further with a zero-trust architecture, which requires constant identity verification for anyone trying to access critical systems.

4. Create an Incident Response Plan

You need a plan if—and when—things go wrong. This is called an incident response plan (IRP). It outlines exactly what your team should do in the event of a cyberattack.

Your IRP should cover aspects like:

• Who is responsible for what in a crisis
• How communication will flow both internally and externally
• Steps to take to contain the breach and recover data
• Guidelines for reporting the incident to the appropriate authorities

To make sure your plan covers all the bases, you can follow the incident response guidelines from the National Institute of Standards and Technology (NIST).

5. Comply With Cyber Security Requirements

You should get HITRUST-certified at this point because it proves that your business meets rigorous cybersecurity standards, ensures you’re protected against potential threats, and makes you more attractive to insurers. 

You also want to think about other security standards before applying. Are you up to speed with standards like PCI DSS, GDPR, HIPAA, and SOC 2? 

If there are any gaps between your current practices and industry-standard requirements, address them first. This might require you to update security controls, implement better data protection measures, or refine your incident response plan. 

Get HITRUST-Certified and Insurance-Ready With I.S. Partners

With healthcare data breaches costing millions on average, having solid cyber insurance is key to protecting your organization from massive financial losses. The HITRUST certification makes it easier to get approved for insurance and shows insurers that your company follows strong cybersecurity practices and can tackle the current threat landscape. 

Looking for a smooth certification process? Book a one-to-one free consultation with our experts. We also have a live chat feature on your website if you have any questions!

About The Author

Robert Godard

Robert is a Principal with I.S. Partners, LLC’s Business Process/Advisory Services practice in Horsham, PA. Robert has conducted a variety of Financial Statement Audits for a range of industries such as banking, healthcare, payroll, employee benefit plans (Pension, Health and Welfare), Unions and Construction.

Robert’s specialty is in audits of IT Controls and Infrastructure, Financial Statements, SOC 1 and SOC 2 audits, HITRUST CSF Assessments, Model Audit Rule (MAR), including evaluating business process as well as IT General Controls surrounding the reporting of financial information. He also has experience with analyzing Health Insurance information from AmeriHealth, Blue Cross Blue Shield, Express Scripts and Delta Dental. Additionally, Robert has performed audits for Construction and Special Tax related credits (Historical Tax Credits). He has prior work experience using ISSI, Great Plains and Peach Tree.

Prior to joining I.S. Partners, LLC, Robert was employed with Novak Francella in the Financial Statement Audit division, where he worked as an associate on external audit engagements in accordance with GAAP and DOL requirements.

Robert has a Bachelor of Science degree in Finance and Accounting from LaSalle University, Philadelphia, PA.