New Jersey businesses can be held liable for data breaches involving sensitive healthcare data, even if the information wasn’t misused.
The Third Circuit Court of Appeals recently held that Horizon Blue Cross Blue Shield of New Jersey may be held liable for a data breach under the Fair Credit Reporting Act (FCRA), despite the lack of evidence that any of the stolen data was used to the plaintiffs’ detriment.
Healthcare Data Breaches The Court’s decision in serves as an important reminder of the significant liability New Jersey businesses can face in the wake of patient data breach. According to several studies, the healthcare companies are more susceptible to data breaches when compared to other industries. In fact, the Ponemon Institute found that almost 90 percent of all healthcare organizations it studied suffered at least one data breach in the past two years. On average, those cyberattacks cost $2.2 million per incident.
Risk Mitigation Steps Because of the significant risk of exposure faced by healthcare companies, it is important that they take appropriate steps to address those risks. For example:
Review IT infrastructure with those that maintain the company’s servers, hardware, software and cloud-based systems to ensure proper security systems are in place. As companies may be held liable for a data breach despite a lack of evidence of misuse or breach, ensuring that the proper standard of care is taken to protect patient data is essential to mitigating risk.
Review policies, handbooks, and security procedures applicable to company personnel and personnel of key business associates. Employees are the first line of defense against purposeful third party intrusion and accidental misuse.
Review agreements with vendors and suppliers to ensure that they are committing to a proper standard of care and are properly responsible for any data breach they cause affecting company’s patients’ data.
Ensuring proper disclosure is made to patients regarding the company’s use, sharing, storage and transmittal of company’s patients’ data and obtaining a proper acknowledgment of any such disclosure.
Potential Resources This is a growing area of potential risk and liability. New Jersey businesses that handle personal health information or other patient data should take steps to minimize the risk of data breaches. Those steps should include consulting with attorneys specializing in cybersecurity risk analysis and mitigation to help navigate these steps.
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
