Cyberliability in the Spotlight


Cyberliability is the most significant emerging exposure, yet not many nonprofit organizations purchase coverage for this risk.


“You obviously can just pick up the paper or read a Twitter account to see what the latest hot issues are, and it doesn’t take a really smart person to realize that cyber is all the press.” Maria Treglia, Program Brokerage Corp.


Regulatory risks associated with government funding and wage- and-hour claims under the Fair Labor Standards Act are the most prevalent employment practice liability exposures, but cyberliability is an important emerging risk. Nonprofits that engage in fundraising risk violating donor privacy if a computer hacker gains access to personal data and credit card information. While the problem makes headlines with each hacking incident, few nonprofit organizations purchase insurance to cover this exposure.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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