How Your Clients Can Implement a Cybersecurity Strategy

It is always good to have a cybersecurity strategy, especially dealing with the personal details of many people. HOA boards are responsible for representing the collective interests of their membership in all of their activities. Therefore, it entails taking effective steps to mitigate the risk of foreseeable liability and loss. Cyberattacks have become more and more prevalent in recent years, and HOAs may be particularly susceptible to this area of risk.

The Cybersecurity Strategy for HOAs

Associations must implement robust cybersecurity protocols and select their insurance coverages strategically.

Cybersecurity Must Be a Budgetary Priority

An HOA has to use its resources judiciously, but giving short shrift to cybersecurity controls in their spending could prove to be regrettable. Boards must be willing to allocate adequate capital toward data security initiatives and cyber liability protection.

Examples of expenses that should factor into an operating budget include technological tools such as antivirus programs and secure cloud storage. They may also need to get assistance from a professional IT management service provider to handle networking and data security.

Associations Need To Create Formal Cybersecurity Strategy and Plans

HOAS should establish written procedures detailing what they must do to maintain data security. A written plan has to be consistent with applicable federal and state laws. A policy should describe specific security protocols and the means that an association will use to enforce compliance with its own policies.

A comprehensive cybersecurity plan should also feature provisions on how an association should respond to a data breach. Allowing a breach to occur will not automatically result in liability. However, failing to take appropriate remedial measures after the fact could be an egregious omission that jeopardizes the membership of a homeowners association and imparts liability to the association. 

Restricting Access To Data Is Crucial

HOA board members should take steps to ensure cyber criminals will not have ready access to their networks, communications, or accounts online. It is a good practice to tier access to network settings and specific data types. Likewise, board members and agents of an association, such as a property management company, must utilize strong passwords that criminals cannot easily break. 

Cyber liability Coverage Can Safeguard an HOA Against Liability and Loss 

One of the most important reasons your clients need cybersecurity strategies is that the data they must protect belongs to the members whose interests they represent. It includes the personal information of the individual homeowners who make up the membership and the association’s financial data. Resultantly, a breach could bring about considerable liability and direct losses.

Cyber liability coverage is an essential failsafe that can help an HOA navigate the fallout after a breach. Policy benefits enable an association to recoup its direct losses, address liability claims, and conduct a thorough investigation.

Cybersecurity is a growing area of concern for HOA boards. Insurance providers should work closely with these clients to help them protect themselves against pervasive threats online. 

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.