Cyber Liability Coverage for your Nonprofit, Social and Human Services

What is Cyber Liability Coverage?

Cyber Liability is an insurance coverage that can help protect a nonprofit against losses resulting from personal information being lost or stoeln. USA Today explains that this coverage was first developed in the 1990's to cover computer failures, mainly in banks and large fortune 500 companies. Since the 2000's however, the coverage has evolved into a full liability coverage that could cover customer information, data breach and even social media accounts being hacked. As the Technological Revolution begins to take over, Cyber Liability Coverage will become even more necessary to nonprofit organizations of all types around the world. 

Why do nonprofit organizations need Cyber Liability Coverage?

Any nonprofit, large or small, that conducts business over the web should obtain Cyber Liability Coverage. Nonprofits that need coverage typically retain or handle personally identifiable information from customers, employees or volunteers. For instance a nonprofit group home collects medical records and social security numbers for its residents. A computer hacker is able to access this information during a breach of data exposing the group home residents’ confidential information. The nonprofit realized the importance of this coverage after paying for the following during this data breach:

• notification costs to alert the 85 residents
• credit monitoring for two years for the 85 residents
• attorney fees and defense costs for lawsuits claiming mishandling and improper safe guards of confidential records

Today, hackers are not only searching out big banks and fortune 500 companies. They have their sights set on any and all businesses that are not properly protected, including nonprofits and social/human service organizations. Luckily, some insurance companies can add a Cyber Liability and Data Security endorsement to their Directors and Officers Coverage.

To protect your company from data breaches, get a quote for Directors and Officers Insurance or monoline Cyber Liability for your nonprofit, social or human services.