HIPAA Breach Insurance: What Your Practice Actually Needs

Most medical practices carry cyber insurance that doesn't cover HIPAA breaches. Learn what your practice actually needs.

Healthcare | 12 min read | 2026-03-01

Healthcare is the most expensive industry for data breaches at $10.93 million per incident. But most medical practices carry cyber policies designed for retail or tech companies — not for HIPAA. Here's what actually matters.

Healthcare has held the top spot for the most expensive data breaches for 13 consecutive years. At $10.93 million per incident, the average healthcare breach costs nearly double the next closest industry. And that's the average — the Change Healthcare attack in February 2024 affected 192.7 million individuals and is estimated to cost UnitedHealth Group over $2.45 billion in total.

In This Article

• The $10.93 Million Problem
• Why Standard Cyber Policies Fall Short for Healthcare
• The Six Coverage Components Every Practice Needs
• The Three Scenarios That Bankrupt Practices
• What to Look for When Shopping Cyber Coverage
• The Cost of Getting It Right vs. Getting It Wrong

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