Cyber risk and pharmacies: What you need to know

Technology is now fundamental to the day-to-day running of a pharmacy. From dispensing systems and patient records to online services and emerging uses of AI, digital tools are helping pharmacies work more efficiently and support better patient outcomes.

But increased reliance on technology also brings increased exposure to cyber risk.

Pharmacies hold significant volumes of sensitive patient information and depend on digital systems to operate. This can make the consequences of a cyber incident particularly disruptive.

And it isn't only malicious attacks that businesses need to consider. While ransomware and attacks by third parties are a significant concern, network failures and operator errors can also lead to costly disruption.

What could a cyber incident mean for your pharmacy?

The effects of a cyber incident can extend well beyond the initial IT problem.

If systems become unavailable, a pharmacy could find itself unable to operate normally while the incident is investigated and resolved. Depending on the severity, that could result in a significant loss of income.

There is also the potential impact of compromised patient data. A breach could lead to legal action, regulatory scrutiny and reputational damage, particularly where patients' sensitive information is involved.

An incident may also result in an investigation by the Information Commissioner's Office, creating another challenge for a pharmacy already dealing with operational disruption.

Preparing for the unexpected

Cyber risk can't simply be viewed as an IT issue. It is a wider business risk that pharmacies should consider as part of their overall approach to resilience.

That means thinking about how you would respond if your systems were unavailable, who you would turn to for specialist support, how long your business could manage a period of disruption and what financial protection you have in place.

Cyber insurance can form part of that preparation. Depending on the cover in place, it can provide access to specialist IT, forensic, legal and PR support following an incident, as well as protection against risks such as business interruption, data and digital asset loss and legal costs.

Evidence of cyber cover is also increasingly being requested as part of tender processes, reflecting the growing importance organisations are placing on cyber risk management.

Understanding cyber risk for pharmacies

We've created a short video looking at some of the cyber exposures pharmacies face, the potential consequences for a business and the role insurance can play as part of a wider approach to managing cyber risk.

Talk to people who understand pharmacy risk

Cyber risk is complex, and every pharmacy business is different. Understanding where your exposures lie and what protection is appropriate is an important part of building your resilience.

At Howden, we combine specialist cyber insurance expertise with an in-depth understanding of the pharmacy sector. We can help you understand the risks your business faces, review your existing protection and consider the cover that is right for your pharmacy.

Speak to our pharmacy insurance specialists about your cyber risk.