WARREN, N.J.--(BUSINESS WIRE)--Fourth graph should read: “The fact is that senior living facility owners who do not make an effort to prevent data breaches are being punished by courts and regulators,” said Salter... (sted “The fact is that senior living facility owners who do make an effort to prevent data breaches are being punished by courts and regulators,” said Salter...).
The corrected release reads:
GROWING LIABILITY RISKS FOR DATA SECURITY AND PRIVACY VIOLATIONS IN THE NURSING HOME OR EXTENDED CARE FACILITY: NEW REPORT BY PROFESSIONAL RISK SOLUTIONS
According to a new report just released by Professional Risk Solutions (PRS), nursing homes and other extended care facilities are facing growing liability exposures in the area of data security and privacy, putting the facilities and their owners at risk for severe penalties, judgments and ancillary costs. The report is available for download at carenet.prsbrokers.com.
De’Andre Salter, president of PRS, said “Senior living facilities are responsible for safeguarding highly sensitive patient information in their systems — such as medical records, bank account numbers, social security numbers, and dates of birth. If that data is ever compromised, leaked, or stolen, the facility can face substantial fines and lawsuits. It is a huge vulnerability that General Liability policies do not cover at all and it is actually more likely than a slip-and-fall claim.”
The PRS report describes the most common incidents and scenarios that can expose sensitive data — even unintentionally or accidentally — and put the firm in violation of HIPAA and a complex of state laws, and expose them to litigation for privacy breaches, financial loss and identity theft. The brief also notes how and where strategic and specialized coverage can respond in such situations, where conventional liability will not. In addition, the report provides owners of senior living facilities and insurance companies that specialize in this segment, with peer purchasing data to help them determine the appropriate cyber limit and deductible to secure. Senior living loss scenarios are also provided to help identify the unique vulnerabilities associated with owning or operating a nursing home, assisted living, independent living facility or other continuing care retirement community.
“The fact is that senior living facility owners who do not make an effort to prevent data breaches are being punished by courts and regulators,” said Salter, “therefore, it is very important that owners understand cyber liability insurance alone is not enough, they must be sure their product goes beyond post-incident breach coaching and includes the right mix of pre-incident services, to lower their overall risk.”
PRS, Professional Risk Solutions, based in Warren, NJ, is a wholesale specialty brokerage focusing on professional liability, including D&O, E&O, cyber liability, fiduciary, and related coverages. With offices in New Jersey, Maryland, and Florida, PRS serves commercial agents and brokers across the US.