Do I Need Cyber Breach Coverage?

In short, the answer is yes. Make sure you have Cyber Breach Coverage.

Even if you outsource your claims to a carrier or TPA, if there is a breach you, the MEWA, Employer of IPA, are the one who will be sued.

The reason is: Who was the PHI (Protected Health Information) or PPI (Protected Personal Information) disclosed to? If it is a member or employee, it was the employer or MEWA who received the protected information. The fact that the employer or MEWA hired a third-party to run their plan is not germane. Certainly, if that third-party causes the tort they can be pursued, but the employee or member will sue the employer or MEWA.

Think of PHI or PPI as money that you are receiving as a deposit. If that money is lost by a third-party it’s still your responsibility, as the employer or MEWA.

This is insurance advice; your attorney is the final authority on all legal matters.