Cyber Insurance for Healthcare Providers

Healthcare providers manage sensitive information every day. Patient records, diagnostic details, payment information and clinical notes hold significant value, which makes this sector a frequent target for cyber attacks. According to the Australian Signals Directorate’s latest Annual Cyber Threat Report 2024 to 2025, more than 84,700 cyber crime reports were lodged, equal to one incident every six minutes. Healthcare remains one of the most targeted sectors due to the volume and sensitivity of the information it holds.

These figures reinforce why Cyber Liability insurance is becoming a key consideration for healthcare professionals and organisations of all sizes

Why healthcare practices face increased exposure

General practices, dental clinics, allied health providers and specialist rooms experience particular challenges. These include: • Limited budgets for dedicated cyber support.
• High reliance on cloud based practice management tools.
• Heavy use of mobile devices across clinical settings.
• Large volumes of patient information.
• High appointment turnover and time pressure, which increases human error risk.

Key risks for healthcare providers

In recent years, cyberattacks targeting healthcare systems have increased in volume and severity. As we move towards a heavier reliance on technology, some healthcare providers could leave themselves exposed to common types of cyberattacks. Some of these include the following.

1. Ransomware

Ransomware attacks can encrypt patient files and disrupt core clinical systems. Healthcare organisations experience consistent targeting due to the operational impact of downtime.

2. Data breaches

Breaches can occur through system compromise, staff error, phishing or stolen devices. Practices may need to notify affected individuals under the Privacy Act 1988.

3. Business interruption

Cyber incidents can stop access to electronic medical records, billing platforms, telehealth tools and booking systems. This can result in appointment cancellations and reduced income.

4. Supply chain risks

Many healthcare providers rely on third party software vendors. A breach involving a supplier can impact their practice even if their own systems were secure.

What Cyber Liability insurance covers

Cyber Liability insurance may help healthcare providers manage the financial and operational impact of a cyber incident. It can include support from incident response specialists, and assistance with restoring data and recovering critical systems. Some policies may also include support for dealing with cyber extortion events and access to legal or forensic investigation services. The specific inclusions vary, so it is important to review each policy carefully to understand the limits and exclusions that apply.

Strengthening a business’s cyber readiness

The Essential Eight Maturity Model outlines practical steps that help reduce cyber risk for Australian organisations of all sizes.

Key actions include:

• Using multi factor authentication.
• Applying software and device updates regularly.
• Keeping secure backups separate from main systems.
• Restricting unnecessary administrative access.
• Training staff to recognise suspicious emails.

These measures support resilience and reduce recovery time after an incident.

Supporting patient trust

Patients expect their information to be handled with care. Cyber Liability insurance cannot prevent every incident, but it may help healthcare providers meet their obligations, maintain continuity and manage the financial impact when something goes wrong. A structured approach to cyber preparedness strengthens confidence across their practice.