The healthcare industry remains one of the most targeted and costly sectors when it comes to cyber risk. Within healthcare, senior care organizations face a particularly complex challenge: they often manage sensitive resident data, rely on interconnected systems and third-party vendors, and operate in highly regulated environments where even small administrative missteps can create outsized exposure.
The cyber risk in senior care
Senior care providers are increasingly attractive targets for cyber criminals because they hold valuable personal, financial, and health information. A single incident can result in significant costs tied to ransomware, business interruption, regulatory response, forensic investigation, notification, and reputational harm.
But the challenge is not only the threat environment—it is also the complexity of the organizations themselves. Many senior care platforms grow by acquiring or managing multiple facilities, each with their own ownership structure, operational model, and contractual framework. That complexity can create unintended gaps in coverage if policies are not carefully tailored.
A real-world example of creative cyber risk solutions
Our team recently worked with a healthcare organization specializing in behavioral health that owned and operated a network of clinics. As part of its growth strategy, the organization acquired the operations of smaller psychiatric offices and managed them through managed service agreement, or MSA, contracts.
The challenge arose from the way those agreements were structured. Under the wording of the MSA, the offices did not qualify as subsidiaries under the cyber policy. At the same time, due to the corporate practice of medicine, the client could not simply modify the MSA to establish a traditional subsidiary relationship—a medical professional had to technically own the office.
This created a coverage challenge that could have left the organization exposed.
Finding the right solution
There were two possible paths forward:
1. List every entity as an additional insured
This would have provided coverage, but it would also have required ongoing administrative oversight to keep the entity list current. That approach would have increased operational burden and introduced more room for error.
2. Work with the cyber carrier to manuscript an endorsement
This solution broadened the definition of subsidiary and accounted for the regulatory structure required for the office entities. It eliminated the need to list each entity individually, reducing administrative work while also lowering the risk of mistakes that could create a coverage gap.
The second option was the preferred solution, and it was ultimately implemented with the carrier.
Why this matters
This example illustrates what an effective cyber advisory looks like in practice. The goal is not simply to place a policy—it is to make sure the policy reflects the client’s actual operating structure and reduces the risk of a coverage gap caused by administrative error.
For senior care and healthcare organizations, that kind of precision is essential. Cyber exposures are too significant, and the regulatory environment is too complex to rely on generic coverage terms or manual processes alone.
By understanding both the operational and regulatory realities of our clients, we help them strengthen protection, streamline administration, and better prepare for the evolving cyber threat landscape.
If you want to learn how your senior care organization can be better protected against cyber risks, contact an MMA advisor today.
