How can nonprofit organizations manage their risk? In this episode of Nonprofit Bytes, GHJ Nonprofit Expert Amy Eybsen and Apex Risk and Insurance Commercial Broker Lucy Busby discuss cybersecurity insurance.
Amy and Lucy discuss how much coverage an organization truly needs, compare first-party and third-party coverage and review the steps that must be taken in the event of a cyber attack.
Lucy noted that some general liability packages include some coverage for cyber incidents, but most do not offer coverage for the two most common cases:
- Funds transfer fraud
- Social engineering claims
Additionally, as cybersecurity trends evolve, what is and is not covered in a policy may also change from year to year, which is why it is important to work with an insurance broker with specific experience with cyber insurance policies.
“A lot of the limits that used to be universally automatically provided and included on a cyber policy are now actually being excluded, or the limits are extremely lessened, so brokers really need to be reviewing all quotes and renewal policies,” Lucy explained. “This is something that can be really easily missed if there is not a thorough analysis or a broker is not savvy to specific cyber coverages and does not know what to be looking or asking for.”
