Detroit Hospital Laptop Stolen With Personal Information

Henry Ford Health Systems in Detroit, MI notified patients of a possible security breach this week after a laptop was stolen out of an unlocked medical office on September 24th. Hospital representatives said although the password was protected, there is a possibility some personal patient information could be at risk.

The laptop contained patient information related to prostate services received between 1997 and 2008 and included some but not all of the following information: Patient name, medical record number, date of birth, mailing and e-mail addresses, telephone number, treatment and doctor visits. No Social Security numbers or health insurance information were stored on the laptop.

So, what does this have to do with my business?

Hospitals and medical offices are not the only organizations exposed to this type of loss. When you consider the massive exchange of data with portable devices like smart phones and laptops, and easily assessable web-hosted data systems and servers, there is a ton of data being transmitted through cyberspace. Throw technically sophisticated computer hackers into the mix and a whole new recipe of liability for your organization comes into focus- Cyber Liability.

Although you may have a general liability insurance policy to protect for company from bodily injury or property damage claims, traditional liability policies do not address internet exposures and the risks involved with internet business. That is why you must consider Cyber Liability Insurance. Cyber liability insurance policies can include:

• Coverage for any negligent act, error or omission by an insured that results in the improper dissemination of nonpublic personal information due to the unauthorized access or unauthorized use of an insured’s computer system.
• Coverage for any negligent act, error or omission by an insured resulting in the unauthorized access or unauthorized use of the computer system
• Coverage for any negligent act, error or omission resulting in the wrongful publication, defamation, slander or libel, product disparagement or other tort related to disparagement or harm to the reputation or character of any person or organization in an insureds Electronic Content or Advertising

Hospital or not, your business may be exposed to cyber liability claims if you do any business on the internet, or in this case, use portable devices like smart phones and laptops to conduct business.

–JK