Homeowner Associations are attractive targets for cyber criminals. With the right hit, cyber thieves can gain all sorts of valuables, from HOA money to homeowner information such as numbers for bank accounts and credit cards and email addresses. With cyber criminals growing more sophisticated, organizations need cyber liability for HOAs to match.
Costs of a Data Breach
Data breaches can happen in multiple ways. A board member might lose a laptop containing sensitive HOA information, for example, or digital thieves can hack into HOA networks. No matter how criminals find their way to financial and personal information, the costs can be significant. They may include:
- Investigations to determine how the data breach occurred
- Notifying affected parties
- Correcting the problem
- Recompensing people who suffer losses from the breach
- Definding lawsuits that result
Furthermore, regulatory agencies might issue fines if they determine the cost to an organization’s reputation is incalculable and could be lasting.
The Right Coverage
Advanced insurance policies help protect today’s HOAs from the financial risks of data breaches. They cover many expenses associated with information leaks, including regulatory fines levied in the wake of a breach. Insurance agents can customize policies for each HOA’s needs.
Threats from cyber crime are increasing for both individuals and associations, including HOAs. Specialized insurance can protect against HOAs’ financial losses should a data breach occur, freeing up HOAs to better serve homeowner needs.