Cyber Liability Insurance
for Nonprofit Organizations
Have you ever thought about all the sensitive information one nonprofit or social services organization maintains on a regular basis? Your organization could file away volunteers' and participants' personal information: bank account numbers, credit card numbers, health records — and it's likely all organized on a computer system.
While that electronic information may be the organizational backbone of your nonprofit organization, it may look like a gold mine to hackers and other cyber criminals. But if you're like many owners of small nonprofit or charity businesses, you may not have ever considered that your organization could be the target of a cyber attack.
The fact is this: small businesses — nonprofits included — can no longer ignore the pressing need for protection against cyber threats. The average cost of a data breach at a small business in 2014 was more than $20,000, according to a report by the National Small Business Association [PDF].
In 2013, that number is closer to 50 percent, according to an Information Security, Cyber Liability, and Risk Management Report [PDF] by Advisen, and it's expected to keep growing. Is your nonprofit or social services organization ready to join the ranks of small-business owners who enjoy protection from data security threats?
Read on to learn more about cyber risk and how to mitigate it with Cyber Liability Insurance.
What Is a Data Breach?
Nonprofits and Social Services Organizations: What Is a Data Breach?
A data breach is when an unauthorized person — cyber criminal or otherwise — gains access to the secure information you keep on your organization's computer network.
Unauthorized access can take many forms, including…
- Malware or spyware damage.
- Crashed servers.
- Hacked email accounts.
- Cyber extortion.
- Stolen information and identities.
Hackers and other cyber criminals know that smaller organizations are less likely than bigger businesses to have effective security measures in place. In the grand scheme of things, it may not seem like your nonprofit's information would be that valuable to a hacker. But if your network is easy to access, you can bet a hacker will take advantage of the opportunity.
In fact, nearly 80 percent of all data breach incidents are "crimes of opportunity," according to the 2012 Verizon Data Breach Investigation Report. With a few basic security protections in place, these incidents could have been avoided. Still, some sources report than almost 70 percent of all cyber crime happens to businesses and organizations like yours — those with fewer than 100 employees.
Cyber Liability Insurance Protects
Cyber Liability Insurance: Protecting Nonprofits and Social Services Organizations from the High Cost of Data Breaches
Data breaches tend to be expensive — $20,000 is nothing to sneeze at. This is precisely the reason why nonprofits and social services organizations should make room for Cyber Liability Insurance in their small business insurance plans.
Cyber Liability Insurance is designed to help not-for-profit institutions shoulder the high cost of data breaches. Because it's difficult, if not impossible, to recover the electronic information once it's been stolen, Cyber Liability coverage helps you pay for the "damage control" actions that will help get your organization back on track:
- Cyber extortion expenses. Sometimes cyber criminals hold your information or website "hostage" until monetary demands are met. This is called "cyber extortion" and your Cyber Liability Insurance can help you pay for this expense.
- Legal expenses. Once a data breach occurs, it's not uncommon for liability lawsuits to follow. Even if you can avoid court, you'll still need to seek professional legal counsel, which can get expensive fast. Cyber Liability Insurance can help you pay these expenses, including settlements and judgments.
- Notifying affected parties. You'll want to notify affected parties that their information may have been compromised during a data breach. This can be a laborious, time-consuming, and expensive process — but benefits from your Cyber Liability Insurance can help you foot the bill.
- Credit monitoring services. Notifying victims of a breach may leave them with a bad taste in their mouths. To help restore good faith, your coverage may pay for services that can monitor their credit. (And data security laws in some states actually require businesses to pay for credit monitoring services following a data breach.)
- A marketing campaign. In order to smooth things over with the public, a good-faith marketing campaign may be in order. Your coverage can help you pay for this campaign so you don't lose any more business.
Your Cyber Liability Insurance coverage can be purchased as a standalone policy, or it can be bundled with yourBusiness Owner's Policy.
Free Cyber Liability Insurance Quotes
Cyber Liability Insurance Quotes for Nonprofits and Social Services Organizations
Ready to find out how Cyber Liability Insurance can protect your nonprofit or social service organization from data thieves? Then get free Cyber Liability Insurance quotes when you contact an insureon agent or fill out our online application.