According to the Charity Commission, in 2023, the UK had over 183,000 charities, generating a total annual income exceeding £81bn. This is a massive sector, and it can be at just as much at risk of cyber attacks as any other business.
There are lots of different types of charities, and their online presence can vary tremendously, so it’s essential to consult a specialist in charity cyber insurance coverage, such as Stanmore Insurance Brokers, for expert advice before you sign on the dotted line and take out a policy.
We can offer you a bespoke insurance package specifically tailored to your charity’s needs, so please get in touch today to learn more.
Do charities need cyber insurance?
These days, every organisation is reliant to some extent on technology, which unfortunately exposes your charity to the risk of a cyber attack.
Cybercriminals typically target online systems, including:
- Accountancy or banking platform
- E-commerce stores
- Social media
- Telephony over VOIP
If your charity is hacked, having a cyber insurance policy is absolutely essential to getting your organisation back on track and avoiding issues such as fines, potential legal expenses and any claims that might be made against you.
Here at Stanmore Insurance Brokers, we can ensure your charity or nonprofit organisation is protected against attacks by cybercriminals.
What are the cyber essentials for charities and nonprofits?
Most charities and nonprofit organisations rely on technology to handle sensitive data and carry out routine operations, so quality cyber security is absolutely critical.
Although specific cyber insurance needs will vary, depending on the organisation’s activities, scope and size, there are a few essential cyber security practices that every charity and nonprofit should consider implementing:
Secure network configuration
To keep cyber criminals out, secure network infrastructure, Wi-Fi settings, firewalls and remote access controls should be implemented and maintained.
User access control
All employees and volunteers should be assigned appropriate access privileges that should immediately be revoked when someone leaves.
Always use up-to-date anti-malware and antivirus protection software on all your devices and update them regularly to keep your charity safe against the latest threats.
Be sure to keep your operating systems and software up to date with the latest security patches and updates.
Your systems must be configured securely, following the recommended guidelines for the devices, operating systems and applications your charity or nonprofit uses. Change the default settings to enhance security and increase protection from attacks.
Regularly back up any critical data, storing those backups securely offline to prevent their loss in the event of a cyber attack.
Your charity must have an incident response plan in place to deal with and minimise the effect of any cybersecurity incidents. Your plan should include detailed steps on how to respond, detect, recover and report any cybersecurity breaches.
Privacy and data protection
Ensure that your charity complies with all current data protection regulations and handles all sensitive and personal data responsibly. That includes implementing measures such as access controls, encryption and data minimisation practices.
Staff training and awareness
Ensure that all your charity’s staff and volunteers are trained in cybersecurity awareness so that they can identify and respond to potential online threats, such as phishing emails and social engineering attacks.
Encourage everyone to use strong, unique passwords on all their accounts and consider using two-factor authentication for extra security. Ensure that passwords are routinely changed regularly, kept confidential and not shared with colleagues, family, or friends.
Mobile device security
Mobile devices are a popular target for hackers, so establish procedures and policies for securing them, including encryption, remote wiping capabilities and password protection.
Check out the security practices of all third-party suppliers dealt with by your charity or nonprofit to ensure they meet adequate security requirements when using or accessing your data.
Cybersecurity is an ongoing process, so you must regularly review and update your security practices to keep up to speed with new, emerging threats.
We can provide you with tailored guidance based on your organisation’s specific requirements, so have a chat with one of our helpful experts today.
What cover does cyber insurance provide for charities?
Cyber insurance policies for charities cover a wide range of risks associated with data breaches and cyber incidents.
Although the specific coverage varies, the most common areas of cyber insurance for charities and nonprofits typically include the following:
Data breach response
Data breach response coverage usually includes any expenses incurred that relate to the response to and management of a data breach incident.
That typically includes the cost of legal consultations, forensic investigations, crisis management, credit monitoring services and public relations.
Data and privacy protection
Data and privacy protection insurance cover your charity against any liabilities arising from theft, loss or unauthorised disclosure of sensitive data.
The coverage can include legal expenses, fines and settlements arising from claims relating to the mishandling of personal information and privacy breaches.
Sometimes, cybercriminals demand payment or threaten to release sensitive information, and cyber insurance might cover the costs associated with responding to these threats.
This coverage helps mitigate any financial losses that your charity or nonprofit incurs because of disruption to your usual business operations following a cyber incident.
That could cover lost income, additional expenses incurred to restore normal operations and any costs associated with minimising the impact of the business interruption.
Cyber liability coverage gives your charity protection against any third-party claims relating to cyber breaches. That typically covers legal defence costs, judgments and settlements, resulting from claims for copyright infringement, defamation, or negligence in safeguarding data.
Network security liability
This coverage protects your charity against liabilities arising from malware attacks, unauthorised access and other cyber threats that compromise your computer systems’ security. That can include damages and legal expenses arising from such incidents.
If your charity or nonprofit uses multimedia – for example, publishing online content – cyber insurance can cover claims relating to infringement of intellectual property rights, defamation or invasion of privacy.
How much does cyber insurance cost for charities?
The cost of cyber insurance for charities varies widely, depending on what coverage you want and the size of your organisation.
Stanmore Insurance only quotes you for the insurance coverage your charity needs, and we always work within your budget. We make sure our costs are absolutely transparent, so you’ll always know what you’ll pay for your charity or nonprofit cyber insurance policy.
Cyber Liability Insurance for Charities and Nonprofit Organisations
Here at Stanmore Insurance, we work hard to build excellent relationships with all of our clients. We’ll provide you with a dedicated account handler who you’ll get to know on a one-to-one basis, providing you with a critical point of contact in the event of a cyber incident.