Do Charities Need Cyber Liability Insurance?

June 23, 2021

Non-profit organizations provide invaluable services to their communities and the world at large. It takes a lot of funding for most organizations to meet their goals, and many rely heavily on their websites for fundraising. If you manage one of these websites, you know how important it is to have the right platform to accept donations, process memberships, or possibly run a gift shop. You may not realize the need to protect your organization by adding cyber liability coverage to your social services insurance

Processing financial transactions online exposes you to cybersecurity risks. It is an unfortunate reality faced by all online retailers and charities. Insuring yourself against liability could protect your organization from the consequences of a cyberattack and ensure a speedier recovery.

Top 3 Reasons Non-Profits Need Cyber Liability Insurance

No matter how careful you are with donor information, there are good reasons to carry cyber liability insurance. 

1. Complex Liability Laws

If cybercriminals access confidential or protected information through a business’s website, that business is typically liable for addressing the threat and compensating the victims. However, the regulations vary depending on the location and the type of data being stored. Many states have their own laws regarding proper disposal of protected information, and liability risks increase if you do not adhere to their standards. 

2. Significant Risks

There is no way to know whether your organization will someday fall victim to cybercriminals, but it happens frequently. Hackers may access personally identifiable information connected to donors, members, or staff. Some of the more sensitive information includes credit card information, social security numbers, and personal addresses. Having any of that information falls into the wrong hands causes significant inconvenience for the victims and may even damage their credit. 

3. Expensive Recovery

Recovering from a cyberattack is an arduous and costly process. Organizations frequently compensate the victims’ losses and must notify every customer or member of the attack. They may need to provide affected donors with additional resources and information for recovery. Those steps may require additional public relations expenditures to rebuild trust in your organization.

There is also the matter of the website itself. Depending on the severity of the attack, it may require modest adjustments or be out of service for an extended time. Repairing the damaged website and protecting it against further attacks may mean additional payroll, software purchases, or professional consultations.

Protecting Your Non-Profit

Speaking to a social services insurance specialist with solid knowledge of cyber liability is an excellent place to start. An insurance agent can help you understand your non-profit’s risks and mitigation requirements. Selecting the right level of coverage protects your organization from severe financial losses in the event of a cyber attack. 

About Hako Risk & Insurance

Count on Hako Risk & Insurance to handle all your construction insurance needs. Whether you specialize in framing, roofing, or scaffolding, we have reliable, comprehensive, and affordable insurance programs. To learn about all of our policies, from workers’ compensation insurance to business interruption insurance, call us at 844-850-440 or fill out our online form.

By Kraig Sturgill August 12, 2025
Tariffs—taxes imposed on imported goods—are designed to protect domestic industries, but they can have ripple effects across your business, including your insurance premiums. Here’s how:
By Kraig Sturgill August 12, 2025
Expanding your manufacturing, importing, or retail business into the United States provides tremendous opportunities, but it also introduces new risks and regulatory requirements. At Hako Risk and Insurance, we specialize in helping manufacturers, importers, and retailers navigate the complexities of U.S. insurance and risk management, ensuring your entry into the American market is both secure and compliant.
By Kraig Sturgill August 12, 2025
Logging isn’t just a job — it’s a trade, a tradition, and for many families, a way of life. From the steady whine of a saw to the smell of fresh-cut rounds piled high, logging takes grit, skill, and an understanding that nature doesn’t always play fair. Whether you’re a feller working deep in the backcountry, a mastication crew clearing dense fuel loads, or a mill operator turning raw logs into lumber, you know the risks can be as big as the trees you work with. One accident, one fire, one equipment breakdown — and the entire operation could be at risk.