Insights
Training
On-demand
INSIGHTS
All Topics
Why your charity needs cyber insurance
12 Aug 2025by Charity Digital
Cyber insurance protects charities in the event of a cyber-attack. We explore the importance of the insurance, the role it plays for charities, and how to pick the best cyber insurance for your needs
Sharelines
Why every charity needs cyber insuranceWhat is cyber insurance?A guide to cyber insurance for charitiesA UK government report from April 2025 showed that four in ten businesses and three in ten charities experienced a cyber-attack in the past year. That means cyber criminals attempted to hit 61,000 charities across the UK. Charities remain under constant threat, especially with the rapid rise in artificial intelligence (AI). Generative AI has made the most prevalent form of cyber-attack, phishing, far more sophisticated, allowing criminals to impersonate with the intention of manipulating employees, forcing them to hand over money, financial details, or sensitive data.
Investing in robust cyber security is more important than ever. But charities need to go even further, protecting themselves against attacks they’re unable to stop. That’s why cyber insurance has become so vital, affording your charity and service users peace of mind, even in the event of an attack. In this article, we explore cyber insurance in detail and explain why it’s so essential.
What is cyber insurance and why charities need it
Cyber security refers to the protection of systems and networks from theft and damage. Cyber security protects hardware, software, and data, ensuring no disruption to services. Charities, as we’ve discussed previously, should practice robust cyber security to protect against attacks. That might mean, among other things, conducting an effective risk assessment, training employees in cyber risk and cyber hygiene, creating a stringent cyber security policy, employing multi-factor authentication, ensuring software is constantly up-to-date, and using strong anti-virus software.
But even charities that take all of the above steps remain at risk. It is impossible to completely and absolutely thwart any potential cyber threats, especially given the fast evolution of tech, especially AI. New threats emerge constantly, forcing shifts in how to practice cyber security. That’s why cyber insurance is vital: it can offer a final layer of protection, even after an attack occurs.
Charities are especially vulnerable to cyber-attacks. That’s because criminals know that charities hold sensitive data. And they know charities tend to push money towards service delivery, often neglecting to futureproof against attacks. And, according to reports, attacks on charities usually pay dividends: in the recent past, more than 70% of incidents resulted in a financial loss.
Cyber insurance can provide a peace of mind, which is vital for charities. Disruption to services can have a huge impact on vulnerable lives. Continuity is essential. And cyber insurance can minimise disruption, helping cover the financial costs involved in handling and recovering from a cyber-attack.
What does cyber insurance look like?
Charities of all shapes and sizes can get cyber insurance. But it’s particularly important for charities that use, send, or store digital data, such as sensitive donor information, and any charities that rely heavily on hardware and software to conduct operations. Digital charities are inevitably more vulnerable to cyber-attacks, which means those charities in particular should consider obtaining cyber insurance.
Our insurance partners, Markel Direct explain, their particular cyber insurance can cover the losses relating to the damage to or loss of information from networks and IT systems. Cyber insurance policies can vary, but they typically cover, among other things, the overall cost of restoring equipment, the meeting of ransom demands, loss to your net profit, legal costs and damages, and so on.
How to obtain specialist and bespoke cyber insurance
Charities need to find the right cyber insurance. Assess your core risks and define your needs, then find an organisation that can meet those needs and request a quote.
Various places offer cyber insurance to charities of different shapes and sizes. We partnered with Markel Direct to provide specialist cyber insurance to protect your charity. They provide affordable prices, starting from £5 a month*, and prepare policies to suit individual charities. Markel Direct are a trusted insurer, currently serving more than 200,000 customers. They provide quick and easy quotes in up to 90 seconds.
*Price based on a fundraising group requiring up to £50,000 of cyber insurance.
Markel Direct’s cyber insurance supports your charity by avoiding the potential financial fallout resulting from a devastating cyber-attack.
This article was produced in partnership with Markel Direct and is not intended as advice or guidance and is solely for informational purposes. If you need more details regarding insurance for your charity, please get in touch with Markel Direct at markeluk.com or get a quote here.
The button above will take you to a Quote and Buy facility provided and operated by our insurance partner, Markel Direct.
Follow-up questions for CAI
How does cyber insurance enhance charity resilience against AI-driven cyber-attacks?What key factors should charities assess when selecting cyber insurance policies?How can charities integrate cyber insurance with existing cyber security measures?In what ways does cyber insurance support service continuity after an attack?How do cyber insurance policies typically cover financial losses for charities?
Our Events
13 May 2026Online
Masterclass: An introduction to generative AI
Charity Digital Academy
Our courses aim, in just three hours, to enhance soft skills and hard skills, boost your knowledge of finance and artificial intelligence, and supercharge your digital capabilities. Check out some of the incredible options by clicking here.
© 2022 Charity Digital Trust. All rights reserved
