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Securing Your Nonprofit from Cyber Risks: The Importance of Cyber Liability Insurance

Feb 23, 2023

Cyber Exposures

Securing Your Nonprofit from Cyber Risks: The Importance of Cyber Liability Insurance

As a nonprofit organization, your mission is to make a positive impact in your community. However, as technology continues to evolve, your organization is also at risk of cyber-attacks. In this article, we will explore how cyber liability insurance works for nonprofits, including what types of coverage are available and how to determine the right level of coverage for your organization.

Understanding Cyber Liability Insurance

Cyber liability insurance is a type of insurance that covers the costs associated with data breaches, cyber-attacks, and other cyber-related incidents. This can include costs such as legal fees, public relations expenses, and credit monitoring services for affected customers. It can also cover the costs of restoring or replacing lost or damaged data, as well as lost revenue resulting from a cyber incident. Cyber liability insurance can be purchased as a standalone policy or as an add-on to a standard liability insurance policy. As cyber incidents become more frequent and more expensive, cyber insurance is becoming essential coverage for businesses of all sizes.

Exclusions in Cyber Liability Insurance

Cyber liability insurance typically does not cover the following types of losses or incidents:

  • Loss or damage caused by employee dishonesty or fraud.
  • Loss or damage caused by war or acts of terrorism.
  • Loss or damage caused by the failure of hardware or software that is not caused by a cyber-incident.
  • Loss or damage caused by a failure to comply with laws or regulations, such as HIPAA or PCI-DSS.
  • Loss of data or financial loss resulting from a failure to back up data.
  • Loss or damage caused by a lack of security measures, such as not regularly patching software vulnerabilities.

What to Expect in Terms of Cost?

The cost of cyber liability insurance can vary widely depending on a number of factors, including the size and type of business, the industry it operates in, and the level of coverage desired. Some estimates put the average cost of a cyber-liability insurance policy at around $1,000 to $5,000 per year for small businesses and $10,000 to $50,000 per year for larger businesses.

Securing Your Business from Cyber Threats

Acquiring cyber liability insurance is becoming increasingly important for businesses of all sizes, as the frequency and cost of cyber incidents continue to rise. Here are a few reasons why it's important to invest in cyber liability insurance:

  • Financial protection: Cyber-attacks can result in significant financial losses for businesses, including the cost of restoring or replacing lost or damaged data, legal fees, and lost revenue. Cyber liability insurance can help cover these costs, providing a financial safety net in the event of a cyber incident.
  • Reputation protection: A data breach can damage a company's reputation and customer trust. Cyber liability insurance can help pay for public relations expenses and crisis management services to minimize reputational damage.
  • Compliance: Many industries are subject to strict regulations regarding data security and privacy, such as HIPAA and PCI-DSS. Cyber liability insurance can help cover the costs of complying with these regulations and any penalties or fines that may result from a violation.

Contact us Today at Fuller Insurance to Cover Yourself Against Cyber-Attacks

Don't let a cyber-attack ruin your business. Protect yourself and your customers today with our comprehensive cyber liability exposure insurance at Fuller Insurance Agency today. Our policy covers everything from data breaches to network failures, giving you peace of mind in the face of ever-evolving cyber threats. Contact us now to learn more and get a free quote.

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