Data or security breaches are becoming more and more common in our technology laden world. These security breaches occur from hackers, employees, vendors, competitors and other third parties and can be intentional or accidental. Most of us don’t equate the Target and Home Depot data security breaches with our community associations or management companies. However, they can and do happen everywhere, which is why you should be prepared.
As an association or management company, you may have personal information of owners or residents and maintaining their trust is a vital aspect of this industry. To do that, it means that information should be secured. How that security happens depends on where the information is stored, who has/needs access to it and what the risks are. But, regardless of the security that is put into place, associations or management companies should also consider purchasing cyber liability insurance, also known as privacy/data liability insurance. This insurance is one of the fastest growing coverage areas. The basic coverage can include coverage for expenses associated with a security breach including legal expenses, notification expenses, regulatory fines and penalties, credit monitoring and public relations expense. Your insurance broker can help you work through this complicated area of coverage.