Charities and Not for Profit’s need Cyber and Data Breach Insurance now more than ever!
Like any other business or organisation which holds data, Charities, and Not for Profit organisations (NFP’s), face increasing risks from potential cyber-attacks or data breach.
Charities and NFP’s are likely to hold sensitive records with details of vulnerable adults, children, and their medical records, with service user’s financial details and those of donors, too.
If you run a Charity or NFP, make sure that you have in place the relevant and adequate Cyber and Data Breach Insurance, in case the worse happens.
What are the threats facing you right now?
Cyber related losses are now the largest recorded offence in the UK, overtaking physical crime. Cyber losses currently cost the UK economy around £27bn per year. The main threats include:
- Systems interruption by malware
- Distributed Denial of Service
- Cyber extortion
- Rogue or Disgruntled Employees
Could this happen to you?
Charities and NFP’s could be more at risk than other businesses and organisations, due to the volume of sensitive personal data that they may hold and the importance of their reputation.
Here are two real-life examples. Could this happen to your organisation and are you covered if it does?
Cyber-attack on the NHS
The NHS experienced a crippling ransomware attack that affected large swathes of the NHS across the UK. The main reasons that the NHS fell victim to this attack, were due to computers across the NHS that had not been updated and that they were still using the outdated Windows XP operating system.
Like the NHS, many Charities and NFP’s simply don’t have the resources to provide their organisation with up to date systems and regular system updates. Therefore, they too are at risk from potential attacks.
Cyber-attack following a simple download…
A third-party payment provider experienced a significant cyber-attack when two employees opened an infected word document which downloaded Crypto Locker Malware on to the businesses network.
This damaging data breach affected 5,000 of their customer records. Users within the business were prevented from accessing their own data and the entire network was down for over 32 hours, incurring a claim totalling £48K.
What are the most important elements of a Cyber and Data Breach Insurance policy?
All Charities and NFP’s should ensure that they have the following cover, should an attack happen.
Forensic – A forensic team to provide a rapid response and quick action to an attack
Legal – Legal advice to provide support and to protect your organisation following an attack
Public Relations – A Charity or NFP’s reputation is a vital asset and needs protecting with public relation support and advice
Event Management – Following a cyber-attack or data breach you will need ongoing support to get your systems back up and running and to safeguard you against future attacks
Other elements you need to be covered for include:
- Credit Monitoring
- Data Restoration
- Network Interruption
- Loss of Income & operating expenses
- Fund transfer fraud
- Theft of personal funds of officers of the business
Data Breach cover, is it important?
Charities and NFP’s need to ensure that they are protected and covered against any potential data breaches. Data is likely to be one of you most valuable assets, but it is also likely to be one of the most uninsured exposures.
Adequate data protection and cover will become even more pertinent, when the General Data Protection Regulation (GDPR) comes into force in May 2018, posing heavy fines on organisations who experience a data breach.
Consequently, it is essential that your organisation is covered for the following, as soon as possible:
- Failure to protect personally identifiable information
- Failure to protect or wrongful disclosure of private or confidential information
- Violation of privacy regulations
- PCI-DSS non-compliance (Payment Card Industry Data Security Standard)
- Crime Cover
At Allied Insurance Services, we work with Charities and NFP’s of all sizes across the UK and we understand the extent of Cyber and Data Breach insurance cover needed.
You may feel your computer systems are well protected, but let’s make a quick comparison with material property. It is likely that you have a burglar alarm and a fire alarm installed on your building, but this doesn’t mean that you wouldn’t also insure the building and its contents. So, why would you install cyber security measures across your network, but not ensure that you have the right insurance cover should an attack happen?
Call Robert Bates on 01942 403381 or email him on Robert.email@example.com to discuss your organisation’s needs.