Do Condo Associations Need Cyber Insurance?

Condo associations and HOAs might not be the first targets people think about when it comes to cyber risks. But of the millions of attacks per year, it’s no surprise that no industry is immune. Condo Association Cyber Risks can vary between email hacking, social engineering, or identity theft. But no matter the kind of attack, cyber risks pose a potential long-term threat to those they affect, creating the need for cyber insurance.

Condo associations keep valuable data on their computer systems, including bank accounts, financial information, Social Security numbers, and condo owners’ email addresses. With this information, cybercriminals can steal identities and money.

In this blog, we’ll highlight the importance of obtaining cyber insurance in condo associations.

Why Condo Associations Need Cyber Insurance

Adding cyber coverage to a condo association pads its risk management plan and protects them against claims resulting from such risks as theft of private data, unauthorized access of data, denial of service attacks, viruses transmitted from computer systems that lead to security breaches, and an association’s failure to comply with state breach-notice laws.

More than five million cyberattacks happen daily, meaning that any weakness in a condo association’s network can lead to exploitation from cybercriminals, especially through third-party vendors.

HOA leaders cannot be content to focus on their vulnerabilities. Third-party vendors, such as landscapers, general contractors, and cleaning companies can present several liabilities. Any vendor who can log into a system represents a potential cyber threat.

Even if they know something seemingly small, like the code to get inside the gates, it can potentially lead to other issues. As many condo associations have learned over time, you can’t control the behavior of outside vendors.

Leaders of a condo association must also stay in the know of growing cybercrime risks, such as social engineering. This issue uses fake login screens and websites that look real but exist only to extract login credentials. Even if a security system is robust and airtight, a condo association’s staff members, along with third-party vendors, can be tricked into clicking a link that reveals this information to the cybercriminals.

Limiting Cyber Risks in Condo Associations

Leaders of a condo association can mitigate their vulnerabilities when it comes to cyberattacks by following strict cyber hygiene guidelines and standards. These include:

  • Updating anti-virus and firewall software
  • Creating separate logins for each online account
  • Using stronger passwords and changing them regularly
  • Training staff to stay updated on the latest cyber threats
  • Limiting access to important data, such as financial information
  • Adding two-factor authentication

While these steps help cut down on risks, they do not ultimately eliminate risks. Condo associations need to be diligent about how they operate with sensitive information. They must also obtain the right level of comprehensive cyber risk insurance to cover losses when and if they occur.

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.