Cyberattacks aren’t just a problem for massive corporations anymore. Small to midsize entities like condominium owners associations (COAs) are finding themselves in hackers’ crosshairs. Whether it’s a phishing email aimed at a board member or ransomware locking up access to payment portals, today’s digital threats have grown more frequent and more sophisticated.
COAs manage a wealth of sensitive data across multiple platforms. From online payment portals to resident communications, digital exposure is no longer just an IT issue; it’s a governance issue, with financial, legal, and reputational consequences. Agents serving condominium associations must be ready to respond with strategic insurance solutions and informed guidance.
What Digital Assets Are at Stake
Condominium associations rely on digital infrastructure to run daily operations. These platforms often include the following systems:
- Online payment platforms with bank routing details
- Resident directories and contact data
- Cloud-stored board documents, meeting minutes, and bylaws
- Access control systems for gates, elevators, or amenities
In many cases, third-party property management firms are tasked with handling this data, which adds another layer of cyber exposure. If those vendors suffer a breach, the consequences could fall squarely on the shoulders of the board.
Common Cyber Risks for Condominium Owners Associations
Some of the most frequent and financially damaging cyber threats facing condominium associations today include phishing scams, ransomware attacks, vendor system breaches, and unauthorized platform access. In fact, 46% of all cyber incidents now affect organizations with fewer than 1,000 employees, highlighting how vulnerable smaller associations have become.
Even something as simple as a lost or stolen laptop can become a data breach if it contains association login credentials or bank information. These incidents can lead to legal claims, regulatory scrutiny, financial losses, and damage to an association’s credibility within its community.
How Cyber Insurance Can Help
Cyber liability insurance offers tailored protection when digital threats strike. It typically covers these areas:
- IT forensic investigations to trace the breach
- Legal and regulatory consultation
- Notification and credit monitoring for affected residents
- Cyber extortion payments and crisis communications
Kevin Davis Insurance Services (KDIS) offers cyber coverage designed specifically for community associations. From lost mobile devices to compromised vendor systems, our policies help ensure COAs aren’t left to shoulder the financial burden alone.
It’s important to note that coverage terms, exclusions, and retention amounts vary by carrier. Associations should routinely review their programs with an advisor to catch any gaps in coverage, especially if they use outdated systems or lack encryption protocols.
Add Protection With D&O and Excess Liability
Some cyber claims extend beyond IT departments and into the boardroom. If a board fails to protect data or doesn’t act on known vulnerabilities, directors and officers (D&O) liability claims may follow.
KDIS’s D&O insurance protects not only board members but also volunteers, employees, and developers in governance roles. If legal costs exceed the limits of either D&O or cyber policies, our excess liability coverage can help close the gap. These policies follow form, providing extended limits that align with the terms of the primary coverage.
By combining cyber, D&O, and excess liability policies, agents can help create a strong foundation for both risk mitigation and financial recovery.
Help Condominium Associations Stay Cyber-Ready
Insurance agents play a critical role in helping COAs stay ahead of risk. Proactive measures may include the following steps:
- Enforcing strong passwords and multi-factor authentication
- Updating software and security patches regularly
- Vetting vendors for cybersecurity protocols
- Training board members in basic cyber hygiene
Cyber liability insurance should complement these best practices, not replace them. Agents who pair layered coverage with cybersecurity education can deliver greater value to their condominium association clients.
Cyber Coverage Is a Must for COAs
The digital age has introduced complex liabilities for condominium owners associations. From ransomware attacks to regulatory violations, boards face real-world risks that go far beyond traditional governance concerns.
Cyber liability insurance, along with D&O and excess protection, gives COAs the tools they need to respond quickly and recover confidently. For agents, offering that kind of layered, forward-thinking coverage means becoming a more valuable partner in an increasingly complex risk environment.
Call us today to learn how Kevin Davis Insurance Services can help protect your clients against the growing threats of the digital age.
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 (855)-790-7393 to speak with one of our representatives.