This is a painful illustration of the both the seriousness of protecting patient health data and the challenges that healthcare organizations face in comprehensively addressing IT security risk.
Cyber insurance provides an opportunity to address residual risk in your information security program to offset the costs due to a data breach of ePHI. However, individuals polices, coverage and exclusions are highly variable, so just like any security control it's important to understand your security risk profile before an appropriate security insurance policy can be defined. An assessment, such as a HIPAA Security Risk Analysis should be the first step in any insurance policy strategy. Here's why: A) You'll have to do it anyway, B) The safest approach is to avoid a breach in the first place, C) Your risk profile will enable a better tailored policy.