Cyber Risk Cover for Medical Practices

MDA National Insurance has arranged a complimentary cyber risk policy for all MDA National Insurance Practice Indemnity policyholders until 30 June 2022. There is no need to apply or opt-in. All existing policyholders have access to cyber cover and any new policy that commences after 1 January 2019 will also have cover up to 30 June 2022.

The Cyber Risk Cover protects your practice from a range of risks and ensures you have access to 24 hour cyber crisis assistance for back-up, urgent advice and ongoing support. The cover protects your practice in the case of a cyber and/or privacy event included but not limited to:

• Loss, unauthorised distribution or theft of data
• An attack on your network from a virus, malware or a denial of service
• An extortion event
• A network interruption

Coverage includes:

First Party

• Incident Response - from an actual or suspected cyber event
• Business Interruption - loss of net profit and continuing operating expenses
• Data and System Recovery - increased cost of work, data recovery costs, additional business interruption mitigation
• Cyber Extortion - extortion payments and negotiation

Third Party

• Privacy and Network Security Liability following a data breach or failure of network security:
  • Consumer redress fund
  • Regulatory fines and penalties (where legally insurable)
• Media Liability - liability following defamation or infringement online

The Highlights

•  Contingent business interruption for outsourced technology providers
• System failure triggers - human error, programming error, power failure
• Standard extensions:
  • Emergency incident response expenses within 48 hours - nil deductible
  • Betterment costs - improvement of software and applications
  • Cyber crime - direct financial loss following cyber theft
  • Reward expenses
  • Telecommunications fraud
• Payment on behalf for incident response expenses
• Flexible incident response providers
• Rogue employee
• Voluntary notification
• Voluntary shutdown
• Cyber terrorism

MDA National Insurance has purchased a policy through Lockton Companies Australia Pty Ltd from Chubb Insurance Australia Limited, for the benefit of all MDA National practice policyholders. MDA National Insurance is not the insurer for the cyber policy.

MDA National provides educational support and practical resources to doctor Members and Practice policyholders to help mitigate cyber risk. Search for “cyber” in our Resources library for case studies, articles, blogs and podcasts to help you prepare your practice staff, doctors and medical practice for cyber risk. Also, keep an eye on What’s On for upcoming education sessions.

Practices that took out a policy after, or have held a policy since 01 January 2018 will benefit from the cyber cover from the time their MDA National Insurance Practice Indemnity Policy commenced until the earlier of 30 June 2022 or their ceasing to hold an MDA National Insurance Practice Policy.

The cover for each practice is up to $100,000* in the aggregate for the policy period. A total aggregate limit of $20,000,000 applies to the Cyber Risk Cover which encompasses all eligible Practice Policyholders.

*Cyber Enterprise Risk Management Insurance Policy is arranged by Lockton Companies Australia Pty Ltd (ABN 85 114 565 785), underwritten by Chubb Insurance Australia Limited (ABN 23 001 642 020) and can be accessed by new and current MDA National Practice Policyholders until the earlier of 30/06/22 or their ceasing to hold a current MDA National Practice Indemnity Policy. The Cyber Enterprise Risk Management Insurance Policy terms, conditions, exclusions, limits and deductibles apply. MDA National insurance products are underwritten by MDA National Insurance Pty Ltd (MDA National Insurance) ABN 56 058 271 417 AFS Licence No. 238073, a wholly owned subsidiary of MDA National Limited ABN 67 055 801 771. Before making a decision to buy or hold any products issued by MDA National Insurance, please consider your personal circumstances and read the Important Information and Policy Wording and the Supplementary Important Information and Endorsement to the Policy Wording available at mdanational.com.au.

Yes there is a $10,000 deductible for each claim which you must pay if you make an insurance claim under the policy. 

A waiting period of 24 hours applies before Business Interruption cover can take effect.

Finally, a 30% Ransomware co-insurance clause applies. Ware event is subject to 30% co-insurance participation which represents the amount any Loss for each and every Single Claim arising out of Ransomware, that Practices shall bear at its own risk and which will be uninsured by Chubb. The Ransomware clause does not impact the Practice's ability to access immediate claims response assistance.

Step 1

Please contact that Chubb Claims Hotline on 1800 027 428 and Lockton's (the broker) on 0433 337 922 or mark.luckin@au.lockton.com. Lockton will provide notice of the incident to the Incident Response Managers.

Step 2

Chubb and the Incident Response Manager will acknowledge claim and begin investigation and retain the appropriate team to assist.

Step 3

The Incident Response Manager will assist you and liaise with Chubb (the Underwriter) and guide you through the claim process.