Does Your Board Need Cyber Liability Insurance to Reduce Your Association’s Risk?
Have your board and management company taken steps to protect the personal information of your unit owners and residents from falling into the wrong hands? Even if you have taken precautions, you can still be hacked or otherwise compromised.
Residents may still file suit against the association and board in the event of a data breach, even if your managing agent stores all resident data on its own servers.
A cyber liability insurance policy, which will protect your association in the event of a breach, should be an essential part of your risk management plan. If personal information is disclosed or identities are stolen, your common general liability, Directors and Officers liability and your managing agent’s insurance WILL NOT fully cover claims related to the breach. But cyber liability insurance will.