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.
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.
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.
Cybercrime 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.
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:
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.
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!
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:
For third-party nonprofit cyber insurance, it covers:
