This article was provided by Lockton Affinity, the administrator for the AAO-Endorsed Insurance Program, and is not intended as legal advice. Available insurance products include group term and level term life insurance, group disability insurance, critical illness insurance, cyber liability insurance, business overhead expense and more. Lockton Affinity is focused on enhancing the insurance program to ensure it continues to meet the changing needs of orthodontists. To learn more, contact Lockton Affinity at (844)-893-9888 or visit AAO-Insurance.com.

Cyber Liability insurance is a relatively new insurance policy that is recommended for small and mid-sized businesses.  To offer a tailored Cyber Liability insurance policy for AAO members, the AAO-Endorsed Insurance Program, administered by Lockton Affinity, has partnered with Beazley, one of the leading experts in cyber insurance.

Read on to get answers to your pressing questions about this coverage and how the AAO-Endorsed Insurance program’s policy is tailored to the needs of orthodontists.

QUESTIONS AND ANSWERS ABOUT CYBER LIABILITY INSURANCE 

Is Cyber Liability insurance important for my practice?
The health records, payment methods and contact information you collect from patients are valuable on the dark web. Cyber criminals want it and will use a variety of tactics to get it.

According to IBM, the average cost of a data breach reached an all-time high in 2023 and ransomware demands continue to grow, with the average reaching $1.6 million. The healthcare sector is one of the most targeted fields, accounting for 24 percent of ransomware attacks.

Cyberattacks can lead to severe consequences, including patient record theft, HIPAA violations and significant disruptions to your practice. These incidents can damage your reputation, jeopardize your patients’ trust and result in costly fines, but Cyber Liability insurance can help.

With the Cyber Liability policy from the AAO-Endorsed Insurance Program, AAO members have access to Beazley’s dedicated network of cyber response professionals whose primary job is to resolve cyber incidents swiftly and effectively. If an incident occurs, you receive timely, hands-on support from industry experts who will handle the response from start to finish.

What are types of cyber threats that could impact my practice?
Phishing, ransomware and malware are some of the most common cyber incidents orthodontist practices face.

These incidents involve a cybercriminal attempting to gain access to your practice’s system so they can search for valuable resources, such as patient and employee information, banking details and backups for business-critical resources and systems.

If a cybercriminal gains access, it may require hiring forensic analysis and legal experts to determine exactly what happened and ensure you take the right steps after the incident. You may also need to notify patients after a breach and require public relations support.

With Cyber Liability insurance from the AAO-Endorsed Insurance Program, just one phone call gives you access to Beazley’s robust network of cyber response professionals, ensuring prompt resolution and comprehensive support tailored to your needs.

What is the benefit of this Cyber Liability policy vs. one my local agent can provide?
Cyber Liability insurance from the AAO-Endorsed Insurance Program is designed especially for orthodontists and their practices, so it provides coverage to protect you and your practice against the top cyber threats impacting today’s orthodontists.

In addition, if an incident occurs, you only need to make one call to receive hands-on support. By aligning with Beazley, one of the largest cyber providers in the world, AAO members have access to a large network of specialized, experienced industry experts who will handle the cyberattack response from start to finish.

This policy is exclusive to the AAO Insurance Program, which means you cannot access it through a local agent. A policy your local agent offers may not offer the coverage or limits your practice needs at an affordable price.

Is Cyber Liability insurance expensive?
The cost of a Cyber Liability insurance policy may be surprising to some AAO members. This cost can be attributed to several factors:

  • The threat of cyberattacks continues to grow across industries.
  • Orthodontic practices hold valuable patient data like Social Security numbers, payment details and health records, making them prime targets for cyberattacks.
  • Dealing with the aftermath of a cyberattack is costly. Ransom payments for stolen or compromised files can top several million dollars. Technical forensic analyses and other cyber consulting services to handle the attack, incident communications, public relations and legal services to manage the business impact, and identity theft protection to restore trust with patients all play a role.

While practice owners may not know what premium costs or coverage levels to expect, the policy available through the AAO-Endorsed Insurance Program is truly a unique and exclusive coverage form. Orthodontists likely cannot find this level of protection at this price through a local agent.

AAO Endorsed Insurance Progam Cyber Liability Insurance
The Cyber Liability insurance policy available to AAO members is designed to protect orthodontists and their practices. It offers clear benefits like incident response, notification services and access to a network of cyber breach response professionals.

 Still have questions? Learn more about this beneficial policy or contact Lockton Affinity’s dedicated team of representatives.

Have the answers you need? Apply for coverage today with our short online form. We’ll review your submission and be in contact to help you bind coverage.

The AAO-Endorsed Insurance Program is administered by Lockton Affinity, LLC d/b/a Lockton Affinity Insurance Brokers LLC, Affinity Administrator Services, LLC in California Insurance License Number 0795478, in Arizona Insurance License Number 1800004362 and in Arkansas Insurance License Number 100108685. Coverage may not be available in all states and is subject to actual policy terms and conditions. Policy benefits are the sole obligation of the issuing insurance company. Coverage may be provided by an excess/surplus lines insurer which is not licensed by or subject to the supervision of the insurance department of your state of residence. Policy coverage forms and rates may not be subject to regulation by the insurance department of your state of residence. Excess/Surplus lines insurers do not generally participate in state guaranty funds and therefore insureds are not protected by such funds in the event of the insurer’s insolvency. American Association of Orthodontists (AAO) will receive a royalty fee for the licensing of its name and trademarks as part of the insurance program offered to the extent permitted by applicable law.