Healthcare Readiness Report

Cyber Insurance Readiness for Healthcare Organizations

See how healthcare score on the controls cyber insurance carriers evaluate during underwriting — and what to fix first.

55out of 100
Grade: F

$10.9M

average cost of a healthcare data breach — highest of any industry

88%

of healthcare organizations experienced a cyber attack in the past year

55/100

average Cyber Insurance Readiness Score for healthcare

340+

days average time to identify and contain a healthcare breach

Top Risks

Critical cyber risks for healthcare

1

Ransomware attacks disrupting patient care and clinical operations

2

Protected Health Information (PHI) exposure triggering HIPAA breach notifications

3

Legacy medical device vulnerabilities with unpatched operating systems

4

Business associate and third-party vendor data sharing without adequate safeguards

5

Insider threats from clinical staff accessing records beyond treatment scope

Underwriting Failures

Why healthcare get denied

These are the most common reasons cyber insurance carriers decline or require remediation from healthcare before binding coverage.

No MFA on EHR systems, email, or VPN access for clinical and administrative staff

Missing or incomplete HIPAA Security Risk Assessment documentation

No network segmentation between medical devices, clinical systems, and corporate networks

Absence of a tested incident response plan with HHS breach notification procedures

Benchmark Scores

Healthcare readiness by category

Email Authentication (SPF/DKIM/DMARC)

47/100

TLS/SSL Configuration

58/100

Security Headers

44/100

DNS Security

52/100

Open Ports & Services

59/100

Overall Readiness

55/100

FAQ

Frequently asked questions

Why is healthcare the most expensive industry for data breaches?

Healthcare breaches involve Protected Health Information (PHI) which carries the highest regulatory penalties under HIPAA. The cost includes HHS Office for Civil Rights investigations, mandatory patient notifications, credit monitoring for affected individuals, class-action litigation exposure, and operational downtime in clinical settings where patient safety is at stake. The combination of regulatory fines and patient care disruption makes healthcare breaches consistently the most expensive across all industries.

What cyber insurance requirements are specific to healthcare?

Healthcare organizations face carrier requirements beyond standard controls: documented HIPAA Security Risk Assessments, network segmentation between medical devices and administrative systems, BAA management programs for third-party vendors, PHI encryption at rest and in transit, and incident response plans that include HHS breach notification timelines. Many carriers also require evidence of regular HIPAA training for all workforce members.

How do legacy medical devices affect cyber insurance?

Many medical devices run end-of-life operating systems that cannot be patched. Carriers view unpatched, network-connected medical devices as critical vulnerabilities. Organizations must demonstrate compensating controls such as network segmentation, device monitoring, and access restrictions to avoid underwriting penalties or exclusions for incidents originating from medical device networks.

Can a healthcare organization get cyber insurance without a HIPAA Risk Assessment?

Increasingly, no. Most carriers specializing in healthcare cyber liability require evidence of a current HIPAA Security Risk Assessment. Organizations without one face either outright denial, significant premium surcharges, or policy exclusions for HIPAA-related claims. A documented, annual risk assessment is both a regulatory requirement and a practical prerequisite for obtaining competitive cyber insurance coverage.

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