Cyber Liability Insurance For Churches
Cyber liability insurance is a type of insurance that deals with expenses attached to data breaches, including financial information associated with nonprofit organization’s employees and donors. Since most nonprofit organizations use outdated technology, they are more susceptible to cyber theft. Although, with an effective cyber security system in place, data theft can be avoided. However, if that is not possible for nonprofit organizations, then cyber liability insurance offers some safe footing.
As nonprofit organizations continue to evolve in their dealings with clients, so have the threats to data. Professional hackers are always on the lookout for stealing confidential data containing the financial details of the donors and employees working in various nonprofit organizations. Such data theft can cause unimaginable financial losses to organizations. This is where cyber liability insurance can help to save the day.
Here are some ways in which cyber liability insurance can protect nonprofit organizations during data theft.
Retrieve Confidential Client Information
Most nonprofit organizations keep an extensive and detailed record of their employees, clients, volunteers, and donors. In fact, the financial deposits that are received by these organizations are also performed via computers. So, the account details and access to finances remain open unless secured by strong cyber security measures. Outdated technology doesn’t offer many cyber security features and this is what proves to be a golden opportunity for hackers. In this case, if the data is stolen the organization can use funds from liability insurance to pay for the loss.
In case of major cyber security threats, hardware and software are the most vulnerable and can easily malfunction. The damage depends upon the complexity and magnitude of the cyber threat. However, bouncing back from such major financial blows is not a walk in the park. Paying for liability suits coupled with paying for new inventory can wreak havoc upon any nonprofit organization. This is why it’s mandatory to have liability insurance in place.
Dealing With Affected Parties
There is no doubt that most nonprofit organizations deal with an abundance of information concerning employees, volunteers, and donors. This is what makes them more vulnerable to cyber theft and security threats. Often, donors file heavy lawsuits against the organization’s negligence and as a result, these organizations succumb to financial meltdowns and suffer a great deal. However, if there is liability insurance in place, the insurance agents can handle the court proceedings and donor’s claims without the direct involvement of the representatives of the nonprofit organization.
For non-profit organizations like churches and religious sanctuaries, the challenge to bounce back from data breaches is hard. This is due to their limited resources and use of outdated technology.
Integrity Now Insurance is a church insurance organization based in Arizona. We take pride in being leading church insurance brokers in the market. If you have suffered a data breach or need to protect your church property from one, then consider our liability insurance.
For more information, reach out to us.