Quick Answer: HIPAA Cyber Insurance for Healthcare Practices

HIPAA doesn't explicitly mandate cyber insurance, but the HIPAA Security Rule requires covered entities to manage risk — and a data breach without coverage can cost $100,000–$2M+ in fines, breach response, and lawsuits. Solo practices typically pay $1,000–$2,500/year, group practices $2,500–$8,000/year.

Best carriers for HIPAA-compliant coverage:

Hartford: Strong healthcare endorsements, competitive pricing from $85/mo
Chubb: Premium coverage with regulatory defense and HIPAA penalty sub-limits
Cowbell: AI-driven risk assessment with continuous compliance monitoring
Hiscox: Affordable E&O + cyber bundles for small practices

Compare HIPAA-compliant cyber insurance quotes now →

Why Healthcare Practices Need Cyber Insurance
HIPAA Security Rule and Risk Management
What HIPAA Cyber Insurance Covers
Cost Breakdown by Practice Size
Top Carriers
Common HIPAA Breach Scenarios
How to Choose the Right Policy
FAQ

Why Healthcare Practices Need Cyber Insurance

Healthcare is the #1 targeted industry for cyberattacks. In 2025, the average cost of a healthcare data breach reached $10.93 million, the highest of any industry. A single patient record sells for $250–$1,000 on the dark web, compared to $5–$10 for a stolen credit card.

For small and mid-size practices, the threat is acute — independent practices often lack basic cybersecurity infrastructure, making them easier targets.

→ Get a cyber insurance quote for your healthcare practice

HIPAA Security Rule and Risk Management

The HIPAA Security Rule (45 CFR Part 164) requires covered entities to conduct regular risk assessments, implement safeguards to protect ePHI, develop contingency plans, and maintain documentation. While HIPAA doesn't say "cyber insurance," risk transfer — including insurance — is a valid component of a comprehensive risk management plan.

HIPAA Requirement	How Cyber Insurance Helps
Risk Assessment (§164.308(a)(1))	Carriers provide free risk assessments during underwriting
Breach Notification (§164.404)	Covers notification costs ($1–$5 per individual)
Contingency Planning (§164.308(a)(7))	Funds incident response, forensics, business continuity
Penalty Defense	Covers OCR investigation costs and civil monetary penalties

→ See what HIPAA-compliant cyber coverage would cost your practice

What HIPAA Cyber Insurance Covers

First-Party Coverage: Breach response, regulatory defense (OCR costs, HIPAA penalties up to $2.13M per violation), business interruption, ransomware/extortion, and data restoration.

Third-Party Coverage: Patient lawsuits, business associate liability, regulatory fines, and PCI-DSS fines.

Healthcare-Specific Endorsements: HIPAA/HITECH penalty sub-limit ($1M+ recommended), EHR system failure coverage, telemedicine liability, medical device cyber coverage.

Cost Breakdown by Practice Size

Practice Type	Revenue	Typical Premium	Coverage Limit
Solo practitioner	Under $500K	$1,000–$2,500/yr	$500K–$1M
Small group (2–5)	$500K–$2M	$2,500–$5,000/yr	$1M–$2M
Mid-size group (6–20)	$2M–$10M	$5,000–$12,000/yr	$2M–$5M
Large practice (20+)	$10M+	$12,000–$35,000/yr	$5M–$10M

Increase premiums: Prior breach (+20–40%), no MFA (+15–25%), ePHI on personal devices (+10–20%).
Reduce premiums: HITRUST certification (-10–20%), security training (-5–10%), MFA on all systems (-5–10%).

→ Compare healthcare cyber insurance quotes from top carriers

Top Carriers for Healthcare Cyber Insurance

Carrier	Best For	Starting	Key Strength
Hartford	Small-to-mid practices	~$85/mo	Strong BOP + cyber bundles
Chubb	Established practices	~$150/mo	Highest limits, regulatory defense
Cowbell	Tech-savvy practices	~$75/mo	Continuous risk monitoring
Hiscox	Solo practitioners	~$65/mo	Affordable E&O + cyber bundles

→ Get quotes from Hartford, Chubb, and Cowbell in 60 seconds

Common HIPAA Breach Scenarios

Ransomware on EHR: Dental group's EHR vendor compromised, 15,000 records encrypted, 8 days downtime. Without insurance: $320,000. With insurance: $5,000 deductible.

Employee Phishing: Front desk clicks phishing link, attacker redirects $45,000 in payments. Without insurance: $180,000. With: $2,500 deductible.

Lost Laptop: Physician's unencrypted laptop stolen with 3,200 patient records. Without insurance: $95,000. With: $1,000 deductible.

→ Don't wait for a breach — compare quotes now

How to Choose the Right Policy

Assess risk — patient record volume, telemedicine, encryption, MFA status
Set coverage — minimum $1M for solo, $2M–$5M for groups, HIPAA penalty sub-limit $1M+
Compare carriers — 3+ quotes, compare deductibles, sub-limits, exclusions
Bundle — BOP + cyber saves 10–15%, E&O + cyber for telehealth

FAQ

Does HIPAA require cyber insurance? Not explicitly, but it's a recognized risk transfer mechanism and many BAAs effectively require it.

Cyber vs. malpractice? Malpractice covers clinical errors. Cyber covers data breaches and tech failures. They are separate policies.

Breach with no insurance? You're liable: forensics ($10K–$50K), notification ($1–$5/record), legal defense ($50K–$500K), OCR penalties (up to $2.13M per category).

Ready to protect your healthcare practice? Compare HIPAA-compliant cyber insurance quotes from Hartford, Chubb, Cowbell, and more — get your free quote in 60 seconds.

Related Coverage Pages

Data breach insurance — HIPAA breach response, notification, and forensics coverage
Cyber insurance — Compare cyber policies from top carriers
Cyber security insurance — Protection against ransomware and phishing attacks

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