According to Robert A. Travis, CIRMS, CPIA. “With the potential for a data breach or security incident growing exponentially, cyber liability insurance now serves as the foundational component of a modern risk management strategy. This critical coverage is designed as a formidable barrier that protects community associations from a wide range of technology-related risks. Most general liability insurance policies do not cover cyber– and if they do, it’s usually on a very limited basis. There is a real need to fill this rapidly growing insurance gap.
The battle against cyber assault is ongoing. The technological capabilities of cybercriminals are growing at an accelerated pace. The scenario of almost unlimited threat capabilities, coupled with exploitable vulnerabilities, makes cyber insurance essential for community associations.”
Top 4 HOA Cyber Liabilities
- A community association that stores “personally identifiable information” (PII; e.g., owner addresses, social security numbers, credit card or banking information).
- Disruption of normal operations during a cyber attack.
- Downtime and recovery resulting from a cyber attack, malware, or ransomware.
- Board members using their personal contact systems to send email & maintain email lists.
Small and midsized community associations and management companies tend to be vulnerable, as they often don’t realize the importance of obtaining a cyber risk policy.
Cyber insurance is fast becoming a priority. Many organizations already require vendors to have a cyber insurance policy before entering into an agreement.
7 Key Steps to Reducing your Community Association’s Cyber Risk
- Develop a response plan.
- Obtain security software that is end-point and has constant malware definition updates.
- Limit access to sensitive information.
- Protect personal identifiable information.
- Learn about social media privacy risks.
- Use strong complex passwords.
- Have at least 3 different sources of data recovery points.
Cyber crimes are not going away!
If you believe because you are a small management firm or community association you’ll fly under the radar, you are sadly mistaken. Cybercriminals particularly enjoy going after small entities because the small management firms & community associations are ripe for the picking. The cybercriminal’s risk of being caught is very small. Choose a management company who has Cyber Liability insurance in place to protect your community association and your homeowners.
Do you know how to maintain your privacy on the internet? Email email@example.com, add “Send me the Privacy Checklist” in the subject line, and we will send you our easy to understand tips & privacy checklist.