Category Archives: Risk Management

Don’t Overlook Insurance For Cyber Losses

A recent survey showing a snapshot of risk awareness among US nonprofits shows that organizations are not protecting themselves against a multitude of risks, including cyber risk. The computer age has brought a dangerous new exposure to an organization that needs to be assessed. Ralph Coldiron of Energy Insurance Agency shares why nonprofits are more vulnerable to cyber risk and how we can protect ourselves.

Who is at risk for a data breach?
Any nonprofit organization that handles confidential information, has a computer network or handles personal identifiable information is at risk. Many organizations don’t have the financial capacity to have the most up-to-date software and firewalls, so they’re even more likely to have their data breached which poses a threat both to your finances, your members, and to the organization’s reputation.

Why would organizations need cyber-liability insurance?
It’s no longer a matter of whether you’ll be breached, it’s a matter of when – and many organizations are not aware that their standard insurance coverages typically don’t provide any cyber-liability coverage. They won’t cover damage to or loss of intangible assets, so there goes your donor list or any other valuable data you’ve collected, which can throw a wrench into your organization’s operations. Additionally, standard insurance coverages often don’t cover sensitive information getting into the wrong hands, in which case the entity that los the data is liable for any damages sustained by the victim. If your nonprofit doesn’t have the reserves to cover such a suit, you may want coverage to protect against lawsuits brought by third parties. A cyber-liability insurance policy accounts for the unexpected and protects the nonprofit’s assets.

How do you choose the right coverage?
Cyber-liability insurance is often industry specific and varies based on the organization’s type of risk and level of exposure. If you collect any sort of sensitive information, it’s absolutely worth it. Many cyber-liability products offer a menu of insuring agreements, so you can choose the coverage that works for you. Working with an experienced insurance agency and agent can get you the best coverage for your organization.


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Filed under Information and Technology, Risk Management

Hot Topic From the Principles & Practices Guide: Disaster Preparedness

Eleven days ago, disaster preparedness took on a whole new meaning for many nonprofits in Kentucky.  Whatever you want to call it – disaster planning, emergency preparedness, business continuity planning – the goal is the same: get your organization back up and running in the event of an interruption.  It could be something as small as your computer network crashing or, in our recent case, as big as a storm system that destroys entire communities.  Regardless of the size and scope of the disaster or emergency, having a plan in place can make all the difference in how effectively your organization can address your own issues and be of help to others in your community.  Addressing questions like: who’s the leader of the chain of command should disaster strike;  are staff trained on what to do in a variety of emergency situations; what’s an ideally acceptable amount of downtime before services are up and running again; and does the organization have a list of alternative work spaces are critical BEFORE a disaster or emergency strikes.  A good plan means your organization can:  be up and running as soon as possible; maintain the confidence and trust of staff, clients, donors and others; and if appropriate, provide an effective role in disaster response and relief for your community when they need it most.

Share with us! Does your organization have a disaster plan?  How did you create it?  What challenges have you faced?  What’s worked well?

Learn More:

Communications, Protection, Readiness (CPR) – Npower’s Nonprofit Guide to Business Continuity and Disaster Recovery

A Guide to Disaster Recovery

Disaster Relief – Resources for Charities

KNN Resources – Risk Management

Nonprofit Risk Management Center

Business Continuity Resources


Filed under Risk Management