Cyber insurance is still a new idea to many organizations. But, data breaches are becoming more popular and the consequences of them more severe. As a non-profit, you may feel that you do not have the same risks as a for-profit company. However, there are many reasons that your organization can be vulnerable and why it can be just as or more important to carry cyber insurance coverage for your Organization.
- You need to protect donors’ financial information.
If you store donor information such as credit card numbers, a breach of your system can cause just as much damage as a breach of a retail organization. It’s vital your donors know they are protected and that they can safely give you their information when making contributions.
- Your clients’ privacy needs protection.
If you suffer a breach, your clients’ private information may be threatened as well. A cyber policy can ensure that you have the tools to handle a data loss that affects the people who you help. With a policy in place, you know that you have the ability to handle any costs associated with remediation after a breach, including damage control.
- The law may require it.
In 46 out of the 50 states, organizations are required to notify stakeholders of breaches. This can be a significant cost to your organization. By ensuring that you have coverage, you can make sure that you are able to comply with state laws regarding disclosures in a timely manner.
- Thin margins make coverage a good idea.
Most non-profits operate on extremely slim budgets. The cost of a cyber breach, without proper coverage, can cost more than your organization can spare. Investigation, management of an incident, remediation, notification of those affected and other expenses add up quickly. By having a good policy in place, you know that you will have the funds to recover without causing problems with the services you offer your clients.
Cyber threats are a factor for any organization with digital record-keeping. Hackers do not care what you do, only whether you have records they can harvest. Make sure that your organization maintains the ability to continue good work that you do by ensuring that you have coverage in place to weather a breach.