Whether large or small, homeowners associations are the stewards of confidential information. Members entrust their communities with Social Security numbers, email addresses and sensitive financial details. This data makes associations an inviting target for cybercriminals, and that stark fact makes cyber liability insurance for HOAs essential.
Cybercrime Consequences for HOAs
If an HOA suffers a data breach, expenses may include:
- Lawsuit defense
- Forensic investigation and mitigation efforts
- State or local fines
- Credit monitoring and compensation for association members
- Notification costs
Leaders of the smaller HOAs on your client list may wrongly believe that they are beneath the notice of cybercriminals. With limited resources to engage professional IT services, small associations can be especially vulnerable to internet predators. In serving these clients, you should augment cyber liability coverage with practical security suggestions.
Cybersecurity Steps for HOAs
Here are some low-cost cybersecurity tips you can include in your agency’s newsletter:
- Turn off Wi-Fi connectivity whenever possible.
- Upgrade routers to the more secure WPA3 wireless standard.
- Establish a weekly routine for software and firmware upgrades.
- Purge the data of former members to lessen liability risk.
Cybercrime is here to stay, and perpetrators are increasingly clever. Agencies that combine top-notch liability coverage with proactive cybercrime risk reduction efforts will see their reputations and client lists grow.