Cyber case studies
Cyber risk is a new and growing threat and charities are on the front line
Cyber risk is gaining profile within the charity sector and not just for the largest organisations. There’s more helpful information becoming available on the subject but many charities still feel ill-prepared for the potential threats. Cyber Liability insurance goes a long way to alleviating the problem. Let’s have a look at some examples ...
A south coast based charity:
- Criminals scammed donors by hacking the charity’s Yahoo email account. They sent emails to over 300 donors requesting new donations using a hoax account. Worried supporters alerted this small local group to the problem.
- Cyber risk insurance subject to policy terms, conditions and exclusions can cover phishing scams. Insurance can pay for the cost of issuing a warning press release or establishing a specific website to advise supporters of fraudulent communications. The cost of reimbursing existing supporters for any direct financial loss and the impact on the charity income can be covered by the right cyber risk insurance
A national charity for vulnerable children
- Fined £70,000 in October 2012 by the Information Commissioners Office (ICO) after information about the care of four children was left outside the home of their prospective adoptive parents. ICO judged the incident ‘entirely avoidable’ and used it as a warning to all charities to fulfil their obligations under the Data Protection Act.
- Cyber risk insurance could settle the costs of notifying the breach and contacting those whose information was breached as well as privacy liability. Where legally permitted as insurable, it can cover regulatory actions and investigations - including the penalty imposed.
Cyber risk and charity insurance is a Gallagher speciality. Come talk us if you have any doubts about your cover.
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