Cyber Insurance for Nonprofit Organizations
Protect Your Nonprofit From Cyber Crime
Cyber insurance for nonprofit organizations is an essential policy for your business to have. With identity theft and cyber crime on the rise, you never know when an attack will happen.
The insurance covers expenses associated with malicious data breaches, software hacks, and other forms of cyber attacks.
Why Should You Carry Cyber Insurance?
As the owner of a nonprofit, it’s important to recognize the threat cyber attacks pose to your business.
No matter how big or small your organization is, a single data breach can jeopardize your entire nonprofit’s operations. Leaked personal information concerning your staff, donors, and other private documents compromises the security of your business and could lead to massive lawsuits and legal liabilities which will negatively impact the future of your service.
This is where cyber insurance works its magic. Also known as cyber liability insurance, the policy will help you financially recover from cyber theft.
Cover Expensive Litigation Fees
Cyber crime can happen to any business, including nonprofits! Unfortunately, when cyber security is weak, your business is susceptible to hackers. This could lead to big legal issues.
Luckily, cyber insurance for nonprofit organizations pays for high costs associated with legal action such as legal defense costs, settlements, and court-ordered judgements.
Protect Your Nonprofit From Costly Data Breaches
Not only will the insurance policy finance litigation costs, but it will also safeguard the nonprofit from breach response costs.
Nonprofit cyber insurance will cover the costs of fraud monitoring services and digital forensic specialists that are hired to investigate the breach.
What Does It Cover?
Cyber insurance for nonprofit organizations will cover finances lost due to hackers, whether you manage an online presence or you are solely a brick-and-mortar business.
There are two types of cyber insurance plans: first-party coverage and third-party coverage.
First-party coverage offers financial relief related to costs that directly impact your nonprofit. Meanwhile, third-party coverage aids in expenses procured when a client sues your organization for failing to prevent the cyber attack.
For first-party nonprofit cyber insurance, it covers:
Cyber extortion demands (ransom payments)
Business interruption expenses
Breach response fees
Consumer credit and fraud monitoring services
Payment Card Industry (PCI) compliance fees
Crisis management fees
For third-party nonprofit cyber insurance, it covers:
Mandatory notification of affected parties
Attorney’s fees
Defense in court expenses
Court-ordered judgements
Are Nonprofits Legally Required to Offer Cyber Insurance?
Although cyber insurance for nonprofit organizations is not typically mandatory, most states will require you to respond to data breaches. Therefore, you will need to hire a digital forensic specialist or some form of crisis management team to investigate the attack.
How Much Does It Cost?
The overall cost of your insurance policy will depend on the amount of sensitive data your organization handles. This includes the internal management of credit card, bank account, medical, and/or social security information of your donors, employees, and other affiliates.
The size of your insurance plan will also depend on:
Your industry
Size of your organization
Number of employees
Want to know exactly how much your policy will cost? Click here to get a quote.
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Secure Your Nonprofit’s Assets
Data breaches and cyber attacks are expensive. Not to mention, they can take a long time to resolve. Without the proper coverage, you run the risk of extreme financial loss.
At the end of the day, cyber insurance for nonprofit organizations is a great way to secure the future of your business.
At CSIP, we believe that your coverage should match your organization’s specific needs. That’s why we never take a “one size fits all” approach to insurance.
Give us a call or fill out the form below for your personalized quote!
How Much Does It Cost?
Depending on the risks associated with your nonprofit organization, you may pay more or less than the average for general liability insurance.
Factors that may affect the price of coverage include:
Services offered by your nonprofit
Types of events you host
Equipment and property in use
Location
Number of staff
Athletic activities
For instance, if your organization involves high-risk activities, such as rescuing and handling injured wildlife, then you can expect to pay more for your policy. Furthermore, if you retain a large number of staff, then coverage cost may be higher.
It’s Time to Protect Your Nonprofit
Your coverage should match your organization’s specific needs. That’s why we never take a “one size fits all” approach to insurance.
Give us a call or fill out the form below for your personalized quote and see how much you can save!
Get a Quote
Your nonprofit matters to us. Let us safeguard your organization when an emergency strikes.