Nonprofit Insurance Program

Importance of Cyber Liability Insurance

By Alexa Connelly
August 27, 2012

There are many things we do in life where we always check the safety out first, so it is surprising to know that 71% of American companies do not have insurance that will cover internet liability which can result in financial danger for your nonprofit. Almost every nonprofit is on the internet nowadays in some way and that puts your nonprofit at risk. Do you have website content about your nonprofit? If you do, your nonprofit can be targeted for violating copyright or intellectual property laws. Other than losing you money, there are a growing number of hackers out there waiting to see your personal and financial information and steal it for their own benefit. To add even more to your plate, federal regulations require that you notify customers in the event of a date compromise.

Are you thinking about getting internet liability insurance yet? Even if you think that your general liability insurance provides internet liability insurance, you may want to check again because most general liability policies exclude internet liability in their policy. A few things that your nonprofit could be held liable for includes

  1.  A visitor to your site ends up with a virus or mal-ware for your website
  2.  Employee or volunteer gets hold of unauthorized access to your donors or supporters information or if the information is misused or disclosed
  3. Employee or volunteer slanders another nonprofit or donor (knowingly or not) through an e-mail, blog, or other social media that infringes on copyrighted material,
  4. Not following federal or state regulations controlling notifications of customers whose personal data has been compromised.

65% of small businesses document customer data, 43% document financial records, 33% store credit card information, and 20% have intellectually property content online. But, no worries, cyber liability insurance for nonprofits  is affordable and available for your nonprofit and is tailored for your needs. Contact your insurance agent today to see if you are protected from this growing risk.


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