What is the difference between the embedded or endorsed cyber insurance and the previous cyber insurance?
- The updated cyber liability coverage we are offering is equivalent to the cyber liability coverage offered by our previous partner, Tokio Marine. Those who report a cyber incident under the revised coverage will be required to pay a $2,500 deductible. (There was no deductible under our previous coverage.)
- Another difference will be in the level of service you will receive if you report a cyber claim and in the types of cyber risk management services that will be available to you.
Why did TMLT change the cyber insurer?
- Because very specific underwriting and claims expertise is required for cyber liability coverage, TMLT uses a separate cyber insurer to provide and manage this coverage.
- Cyber insurance continues to change in response to the current threat environment, especially for health care.
- After an in-depth analysis, we determined that it would be best for our policyholders if we changed business partners. Think of it as going from Cyber Liability 1.0 to Cyber Liability 3.0.
Why is there now a deductible?
- Cyber liability coverage protects you for network security and privacy-related exposures, such as lost or stolen laptops or theft of patient data. These types of incidents are on the rise across all industries and sectors, but especially in health care. With the increase in cyber incidents comes the increase in the number of cyber claims filed.
- Deductibles help insurance companies share costs with policyholders when they report claims.
How much is the deductible?
- The deductible is $2,500.
What are the limits of cyber insurance?
- Cyber insurance limits on the embedded or endorsed included with your cyber liability coverage are:
- Physician: $100,000 per claim / $100,000 per policy period
- Entities: $100,000 per claim / $500,000 per policy period
- For dentists covered under Lone Star Alliance (LSA), the limits are $50,000 per claim / $50,000 per policy period.
- About limits — The limits of coverage spell out the maximum amount your policy will pay. With our cyber liability coverage, there are two limits. The first limit is the maximum per claim (known as “each claim”), while the second limit is the maximum paid during the policy period (known as “all claims”).
- Higher limits are available. Please email cyber@tmlt.org for information on buy-up options.
- In general, insurance companies cannot tell you what limits to carry. TMLT is no exception. But you can speak with colleagues who practice in your specialty and who have similar practice set ups to see what limits on cyber they carry. Your insurance agent or IT service provider may also recommend limits based on your practice situation.
How do I purchase higher limits?
- To request a quote or purchase higher limits, please email cyber@tmlt.org or call 800-580-8658 and ask for Cyber Consulting Services.
How do I pay for higher limits?
- TMLT's cyber buy-up policies are now issued by AmTrust Financial Company (AmTrust). TMLT does not invoice or receive payment for cyber buy-up policies.
Is there a deductible on the higher limits?
- The $2,500 deductible applies concurrently to the cyber buy-up policies.
What do I do if I have a cyber claim?
- Please report the claim by calling 800-580-8658. Once you have made the report, you will be given further instructions. Please note, that you must report cyber claims no later than 60 days from the date you received notice of the cyber event.
I currently have a Medefense Plus policy with Tokio Marine HCC with higher limits for both Medefense and Cyber Liability. When my TMLT policy renews in 2021, how will my coverage be affected?
- Please call your TMLT underwriter if you have a Medefense Plus policy that is non-renewed. Your TMLT underwriter can provide you with specific options for higher limits on Medefense. For a cyber buy up, please email cyber@tmlt.org.