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Home > Blog > Why Nonprofits Need Cyber Liability Insurance
MONDAY, MAY 22, 2023

Why Nonprofits Need Cyber Liability Insurance

Nonprofit Cyber Insurance graphicCybersecurity risks are becoming increasingly severe, targeted and frequent across all sectors. However, nonprofits are particularly at risk since many organizations don’t have the funding to implement adequate cybersecurity protocols. In addition, nonprofits often collect and store highly valuable information about their clients, donors and employees, making them a prime target for cybercriminals. The shift to remote work during the COVID-19 pandemic also significantly increased exposure to data breaches and cyberattacks for several reasons, including expanded attack surfaces, less oversight by security staff and unsecured hardware and networks.

Unfortunately, the way many nonprofit organizations conduct business makes them vulnerable to cyberattacks. For example, while technology has made it easier to accept donations online, it has also made it easier for cybercriminals to steal from them, especially if the website is unsecured. Technology has also allowed for simpler communication processes, but clicking a bad link, downloading a file or opening a malicious PDF can result in a cybersecurity incident with potentially devastating consequences. And while volunteers may have good intentions for volunteering their time, there may be cybercriminals who slip through quick onboarding processes and leave organizations at risk of a cyberattack.

Since nonprofit organizations tend to operate on a limited budget, investing in robust cybersecurity measures or recovering from a data breach may be more difficult than it is for other organizations. However, many cyberattacks can be prevented by locking down the digital donation system, securing email communications, and obtaining a criminal background check on all staff and volunteers. As another layer of protection, nonprofits should consider a cyber liability insurance policy in the event the organization is a  target of a cyber criminal.

If your organization is in need of a cyber liability policy, contact us today, and we will work to find the best cyber policy that fits your organization’s unique situation.

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Posted 2:20 PM

Tags: business insurance, cyber liability insurance, nonprofits
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