What it is
Nonprofit cyber liability insurance provides coverage for instances when your computer security systems are compromised and sensitive data is stolen. It covers the costs to protect the people affected by the breach with resources such as credit monitoring. Additionally, the policy can respond with crisis aid to help protect your reputation.
Three Reasons Why Your Nonprofit Needs this Coverage
- Donor Data: If you keep any type of sensitive donor data such as credit card or other personal information then you need to be protected from a possible hack putting that information in jeopardy.
- Privacy Laws: If you maintain any type of confidential records about the services that you provide individual client they can be at risk of theft and dissemination.
- Anyone is subject to cyber Extortion: Cyber extortion happens more often then you know and it’s important to have cash ready to pay these demands when needed.
This Could Happen to Your Nonprofit
A social service nonprofit’s Executive Director’s laptop was stolen from her vehicle. It contained personal information, including credit card numbers, of donors. While no identity theft claims were made, all of the donors were notified and provided credit protection services for one year. Total costs were $35,000.
High Profile System Breach:
A nonprofit providing services to battered women discovered its system containing confidential client information had been accessed by an unauthorized source. A local newspaper learned of the breach and gave it front page coverage. The nonprofit engaged a PR firm to manage the publicity, which included an ad in the newspaper providing reassurance that the system weakness had been resolved to the satisfaction of local authorities. The PR firm agreed to provide its services at a reduced cost and total expenses were $8,400.