How Your Clients Can Protect Themselves from a Data Breach

A data breach is one of the worst things ever to happen to a homeowners’ association, and your clients must understand the risks. HOAs that don’t do enough to protect themselves against online risks could quickly become victims of a cyber attack. Online threats against HOAs are pervasive, and the fallout from a data breach may have severe repercussions for a membership.

The Dangers of a Data Breach and How to Prevent It Efficiently

Here are some essential things your HOA clients can do to maintain strong cybersecurity.

Identify Cyber Liability Risks

For HOAs to take the proper steps to protect themselves, they need to understand what they are up against. A cybersecurity training session or webinar will enhance board members and managers’ awareness of cyber liability risk exposures. Learning about each type of threat that they have to watch out for can help them target each one effectively

Write a Formal Cybersecurity Plan

Establishing a written plan will give an HOA a working playbook for cybersecurity. Plans should include policies about monitoring network activity, updating software, and saving data safely. They should also detail procedures for sending a notice to the membership when the association learns of a breach that may have compromised homeowners’ personal information. In addition, a written plan has to assign responsibility to individuals for carrying out various cybersecurity functions and enforcing specific policies.

Set Up Safeguards

Restricting access to an association’s network may help to deter cyber theft. Antivirus programs and tiering access permissions can fortify associations from fraudulent access to their financial accounts or information. Likewise, these defenses could protect homeowners’ accounts when they pay dues or assessments through an online portal. Furthermore, it is necessary to shield homeowners’ personal information that cyber criminals might try to access to commit identity theft.

Stop Phishing Scams in Their Tracks

Cybercriminals that employ phishing tactics to infiltrate networks or acquire personal information use many novel but distinct approaches to hook their victims. HOA boards should review informative resources on the telltale signs that an email or a popup may be a phishing attack.

Review Legal Requirements

HOAs have a fiduciary duty of care in managing affairs on the membership’s behalf. To ensure that they are managing risks in a manner that is commensurate with their duty, board members should familiarize themselves with laws governing cybersecurity management. Compliance with legal standards could reduce liability exposure dramatically.

Include Cyber Liability Coverage in HOA Insurance

In addition to considering how to prevent a data breach, associations must have a contingency plan ready if a breach occurs. A readymade response plan equips them to mitigate the damage they sustain from a breach.

A cyber liability is an essential failsafe to integrate into a plan. Policy proceeds can give HOAs the resources to take remedial action, send notices to homeowners, and recoup direct losses. 

Your input can help your clients take a strong stand against risk. With the proper guidance, HOAs can be confident that they are covering their bases to prevent a data breach.

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.

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