The AOA Insurance Program, administered by Lockton Affinity, has partnered with Beazley, one of the leading experts in cyber insurance, to offer a Cyber Liability insurance policy. This exclusive policy is available in two forms at varying prices levels and limit options, allowing you to select the coverage that best fits your needs.

To help AOA members better understand these policy options and the common cyber risks optometrists face, Lockton Affinity has compiled answers to frequently asked questions on these topics.

Answers to Your FAQs about Cyber Liability Insurance

Cyber Liability insurance is a relatively new insurance policy that is recommended for small and mid-sized businesses. Get answers to your pressing questions about this coverage and how the AOA Insurance Program’s policy is tailored to the needs of doctors of optometry.

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 this Cyber Liability policy, AOA 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 optometry 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 Lockton Affinity’s AOA 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.

Where can I learn more cyber terminology to better understand cyber threats?

Learn more about the AOA Insurance Program’s Cyber Liability policy and key cyber terminology with this in-depth coverage guide.

You can also contact Lockton Affinity’s dedicated team of representatives.

What is the benefit this Cyber Liability policy vs. one my local agent can provide?

Cyber Liability insurance from the AOA Insurance Program is designed especially for optometrists and their practices, so it provides coverage to protect you and your practice against top cyber threats impacting today’s ODs.

Plus, 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, AOA members have access to a large network of specialized, experienced industry experts who will handle the cyber attack response from start to finish.

This policy is exclusive to the AOA 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, and likely will not offer response services or support from industry experts.

What are the pricing and limit differences between the two policy forms?

To fit your exact needs, we offer two comprehensive coverage options. Explore our Cyber Liability coverage guide to review pricing and limit options and learn about key cyber risks your practice may face.

What is the difference between first-party and third-party coverages?

First-party coverage is for cyber costs that impact your practice, including business interruption expenses and data recovery costs. Third-party coverage is for cyber liability costs related to patients and other third parties, including regulatory fines, notification costs and legal expenses.

The AOA Insurance Program Cyber Liability policy includes coverage for both first-party and third-party costs.

Why is Cyber Liability insurance pricey?

It may be surprising for some AOA members that the cost of a Cyber Liability insurance policy is similar to the price of a malpractice policy. This cost can be attributed to several factors:

• The threat of cyber attacks continues to grow across industries.
• Optometry practices hold valuable patient data like Social Security numbers, payment details and health records, making them prime targets for cyber attacks.
• Dealing with the aftermath of a cyber attack 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, PR 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 AOA Insurance Program is truly a unique and exclusive coverage form. Optometrists likely cannot find this level of protection at this price through a local agent.

AOA Insurance Program Cyber Liability Insurance

The Cyber Liability insurance policy available to AOA members is designed to protect optometrists 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.