An HOA Board’s Responsibility for Data Protection

Homeowners associations and management companies are seeing the effect that digital threats have on their data security and reputations. Cyber hackers are finding new ways to infiltrate the networks HOAs operate off of and into their private information. Even some tried and true methods of illegal information mining are still working.

About 56% of those who responded in a survey were reported to have gone through a cyber attack via email, or phishing. Something as simple as opening a questionable email is opening the door for hackers who are looking to take advantage of everyone from small businesses to large corporations to HOAs, in this case.

More and more personal data is being stolen from files by those with the ability to break through even the most advanced firewalls. That’s why it’s important for HOAs to know the risks and responsibilities when it comes to securing the data of their members and community.

Cyber Security Know-how

HOAs should have firmly-laid policies when it comes to cyber security and how to handle data break-ins. Local governments and laws will direct how to tack on a new policy, but expectations are virtually the same in cyber security.

First, HOAs should have a clearly defined roster of roles when it comes to cyber security. Who has access to what kind of information? Who should have advanced administrative privileges? Who manages the policy? Also, HOAs should look over the potential risks and come up with a plan of action following an attack. They should consider who will be the point of contact informing those affected and contacting law enforcement in the fallout from a suspected attack.

Additionally, HOAs should be aware of the risk that working on computers, tablets and phones within a network pose. Is sensitive information being passed around? Then members should think of how they can prevent unauthorized people from accessing confidential information.

The Importance of Insurance

HOAs have the option to invest in HOA liability insurance, which will help cover financial issues in the midst of legal claims. And HOAs should be aware that if there is an event that takes place in which members’ sensitive information is stolen there most certainly will be legal action of some kind.

HOA liability insurance is a safety net for associations that will help to limit legal costs so they can get back to picking up the pieces following a breach. In this case, there will be a lot to digest, so dealing with expensive and possibly reputation-threatening data breaches can be made lighter with the help of effective HOA liability insurance.

Residents’ Rights to Information

HOAs should understand that residents will be adamant about being notified if their information was breached so they can take their own steps to patch up security problems. HOAs can take steps to keep members informed by connecting with them through email, phone, social media and newsletters. Also, having in-person town hall meetings about cyber security can help keep people generally informed about the steps they are taking to keep information safe.

About Kevin Davis Insurance Services

For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.