The Chubb Group of Insurance Companies has rolled out an insurance product with an aim to assist small to mid-size health care organizations to manage their data breaches and health care fraud.

The product, ForeFront Portfolio 3.0 for health care organizations provides eight optional coverages, such as cyber liability insurance for the costs associated with data breaches and directors and officers liability (D&O) insurance, which can respond to allegations of health care fraud and abuse, claims Chubb Insurance.

The six other coverage options contain employment practices liability, fiduciary liability, crime, kidnap/ransom and extortion, workplace violence expense, and employed lawyers liability insurance, the underwriter said.

Chubb Specialty Insurance vice president and health care product manager Beth Strapp said many health care organizations are not adequately prepared to fend off a data breach, which exposes them to fines and penalties of up to $1.5m annually, under the Health Information and Technology for Economic and Clinical Health Act.

"ForeFront Portfolio’s cyber liability insurance can provide customized coverage for crisis management and privacy notification expenses, data breach-related fines and penalties, and legal defense costs," Strapp added.

According to the service provider, ForeFront Portfolio’s D&O insurance may cover defense costs and certain fines and penalties, emerging from an investigation, subpoena, search warrant or other types of inquiry into such an allegation, regardless of whether a civil lawsuit is filed.

"This is an important feature of Chubb’s new insurance product since coverage is triggered under most other insurance policies only when a civil proceeding is brought," Strapp commented.