7 Cyber Insurance Myths
Pediatricians Shouldn’t Ignore

MAY 19, 2025

If you’re wondering whether cyber liability insurance is worth the cost for your practice, consider this: Pediatricians handle highly sensitive patient data daily, making them prime targets for cyber threats. The following misconceptions could leave your practice vulnerable to a breach, potentially putting patient privacy and your reputation at risk.

• "Outsourcing patient data means I’m not responsible for breaches." Even if you rely on third-party billing, EHR vendors, or IT support, you’re still accountable for protecting patient data under HIPAA and other privacy laws. If a vendor experiences a breach, your practice must handle the fallout—informing affected families, managing legal repercussions, and maintaining trust with patients.
• "Cyber insurance only applies to electronic health records." Cyber insurance covers far more than digital records—it applies to any sensitive data your practice stores, including physical charts, printed referrals, or prescription records. If a breach exposes patient information, whether online or in paper form, you need protection to mitigate financial and legal consequences.
• "Contracts with vendors provide enough security." While contracts may outline data protection responsibilities, they don’t always shield your practice from cyber risks. If a third party mishandles patient data, your practice may still be held accountable, facing financial burdens and reputational damage. Cyber insurance helps cover costs associated with breaches beyond contract limitations.
• "My pediatric practice is too small to be a target." Hackers don’t just go after large hospital systems—smaller practices are often prime targets because they typically have fewer cybersecurity resources. Cybercriminals know that pediatricians store valuable patient information and may be more likely to pay a ransom quickly to restore operations.
• "My existing insurance covers cyber threats." Standard malpractice or general liability policies rarely include cyber protection. Many explicitly exclude coverage for data breaches, ransomware attacks, and HIPAA violations. Cyber insurance is specifically designed to address these risks, ensuring your practice has financial and legal support if an incident occurs.
• "My IT team has cybersecurity covered." Having a reliable IT team is essential, but no system is foolproof. Cyber insurance provides an extra layer of security—covering breach investigations, legal fees, and patient notification costs that an IT team alone cannot mitigate.
• "We’ve never had a cyber issue, so we’re safe." A clean record doesn’t guarantee future protection. Cyber threats evolve constantly, and even the most cautious practices can experience a breach. Cyber insurance ensures you’re prepared for new risks, so you don’t have to scramble when an attack happens.

Understanding these risks is key to protecting your practice, your patients, and your peace of mind. Cyber liability insurance is an investment in safeguarding the future of your pediatric office. Don’t wait until it’s too late.