SP RI NG / S U M M E R 2 0 2 0 I SS U E
THE
BEACON A CHAPTER OF THE COMMUNITY ASSOCIATIONS INSTITUTE (CAI)
CYBERSECURITY AND INSURANCE FOR ASSOCIATIONS “There are only two types of companies: Those who have been hacked, and those that don’t know they’ve been hacked.” This quote aligns with the recent data breach trend. According to the Insurance Information Institute, in 2017 alone, there were 1,579 data breach claims, which exposed 179 million records. The number of data breaches increased from 2016 by nearly 45% and the number of records exposed increased by almost 400%. That trend has only continued moving upward for the new decade.
Unfortunately, homeowner and condominium associations are no exception to the list of hacker’s targets. In fact, due to the lack of resources, and the fact that more and more associations are holding members’ personal data in their systems, cyber-related insurance claims in this realm have been prominent. From the outside, it makes sense that data breach trends in the owner’s association world are increasing. Think about it, like
most businesses, many HOA and condominium associations are storing names, addresses, credit card data, banking, and other personal information in a digital format. Unlike established businesses, however, most of them don’t have elaborate cyber defense systems in place. Despite situations where all the proactive solutions had been put in place, an incident can still happen, causing a financial burden. Luckily, a critical insurance can be obtained to protect associations from these losses, it’s known as Cyber & Data Breach Insurance. The costs associated with data breaches come from two sources, and a good cyber policy will cover both. The first source of costs are the direct damages that the firm, organization or assocontinued on page 3
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