Nonprofits are at risk for cyber attacks
A NetDiligence Cyber Claims Study ranked nonprofit organizations as one of the top five industries affected by cyberattacks. Several factors contribute to nonprofits being at risk for cyberattacks.
- With limited financial resources, many nonprofits have older computer systems and software. These are more vulnerable than newer products built to fend off cyberattacks.
- Many nonprofits have member mailing lists, collect donations, and confidential employee information stored on their servers.
- Many nonprofits do not have a dedicated IT staff, and tend to have less stringent computer security.
- A disgruntled employee, careless volunteer, or lost laptop can all expose a nonprofit to hackers.
- What if you don’t have a website for hackers to access? The majority of cyberattacks start with a “phishing” or scam email mistakenly opened by an employee.
Cyber Insurance Designed for Nonprofits
The cyber insurance market has evolved with more carriers offering coverage and that coverage is being geared to specific industries like nonprofits. That means coverage is both more affordable and targeted.
Carriers offer pre-claim assistance to help avoid attacks from occurring. If an attack occurs, some carriers assist with data breach notification, which has to comply with government regulations.
A cyber policy for nonprofits can cover first- and third-party costs. Coverage can also include restoring your system and data. Business interruption coverage is critical if a data breach leads to suspending operations.
A cyberattack can lead to serious financial damage, halting services, and damage your reputation. As a nonprofit insurance specialist, BCG has in-depth knowledge of nonprofit operations to help determine your potential risks and coverage needs.