5 Essentials of Cyber Liability Your Board Needs to Consider

Cyber Liability-1Who ever thought there would be such a thing as Cyber Liability? We all seem to take our electronic devises and ability to communication electronically for granted these days. Unfortunately, the more we depend on these things the more complacent we become about the risks involved. And, that complacency is exactly what cyber criminals’ prey on. Thankfully, there is Cyber Insurance available to your nonprofit to help mitigate this risk.

Here are the 5 things your board needs to consider about Nonprofit Cyber Liability Insurance:

1) COVID Has Increased Cyber Risk: With more employees (and volunteers) working from home the less control your organization has over computer usage and security. Since March 2020 we have seen a 25% increase in cyber-attacks in the United States. It’s critical that your organization have policies, procedures and protocols in place to manage remote work. This needs to include specific instructions to your employees and volunteers about the use of electronics (i.e. how, where, what, why, etc.) and your expectations of safe usage.

2) Who Gets Attached Most? We tend to think that it is large businesses and corporations that are attacked by cyber criminals or have their systems get hacked. Certainly, it’s those incidents that get the most press and attention. However, it the small business or organizations that get targeted most. The reason for this is that the hackers find it much easier to target the less sophisticated users of electronics. They know that the smaller the entity the less likely they are to have security and the more vulnerable they are.

3) It’s Not Just Data At Risk: Often the result of a cyber-attack is that you are unable to use your computers or other equipment any more. This can be an issue if your organization doesn’t have extra equipment or can’t easily get new fully programmed computers. It can also be an issue if your employees or volunteers are using their own computers or cell phones to conduct business on your behalf.

4) Loss of Reputation Can Be Devastating to a Nonprofit: The media is usually privy to severe cyber attacks and the news of a cyber attack can be detrimental to any organization. News that your donor database has been compromised is a public relations nightmare for any nonprofit. Even if it is not widely known that your database has been illegally accessed you will still need to notify everyone affected and mitigate the fallout. So, it’s vital to have a public relations plan in place to help navigate the damages and put your donors at ease.

5) What about Regulatory Fees? Is your organization prepared to pay regulatory and other fees associated with a cyber-attack? What about compensatory damages and defense costs associated with third party liability?


Yes, there is a lot to think about when it comes to the use of electronics, the internet, and communications. We can’t just take it for granted because there is significant risk that you need to be prepared for. Thankfully you can purchase Cyber Liability coverage to protect your organization from most of this risk. And, it can be fairly inexpensive depending on the limits and coverages you need.


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