Why Nonprofits Need Privacy and Network Security Insurance
If any type of financial loss occurs within your nonprofits clients’ company, it could be significant enough to easily put them out of business. Unfortunately, Privacy and Network Security Insurance is not typically a high priority for nonprofits, but it should be!
Data breach threats or cyber-attack exposures come from a variety of sources. It could be due to an employee falling prey to email fishing, or a laptop being stolen from an employee’s car. It could even be a result of employee dishonesty where an individual steals credit information from their customers.
Not only can a privacy and network security breach cause a loss of trust and reputation for nonprofits, it can also cause significant financial harm to those whose data is stolen, not to mention the nonprofit itself that will likely be facing a lawsuit brought on by those individuals.
So how exactly could a nonprofit face a privacy and network security breach? Let’s say that a public advocate group’s website was hacked into and the hackers published a database consisting of all the names, addresses, telephone numbers, email addresses, medical conditions, domestic violence reports, etc. This personal information is vital to those it belongs to, and this is just one example.
The demand for cyber insurance, also known as privacy and network security insurance, has grown exponentially in recent years, due to the number of cyber-attacks growing at a rapid rate. An important factor to note about this insurance policy is that it’s not just limited to a breach of an organization’s computer network. Coverage from PL Risk Advisors also provides third party liability, which includes:
- Notification costs
- Reputational Damage Coverage
- Cyber Hostage coverage
- Fines & Penalties
Our Privacy & Network Security Insurance coverage is essential to helping your clients manage and protect against risks. Please contact us today at (855) 403-5982 to learn more.