cyber insurance

Started by AnnS12 • 6 replies • 256 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

AnnS12 (Wisconsin)
Posts: 67

Posted:

We just received our insurance renewal. About a 27% increase. I know a lot of the increase is due to weather related claims. As an Association we have never had a claim. We are looking at other companies.
One item on our coverage is for Cyber insurance. Cost is about $575.00. Is this something we really need. We are self-managed. As the secretary I keep all of our files on a thumb drive which I disconnect when not doing association related work. We do not have a website and there is no personal information except our directory which is just names and addresses which is easily available online. Even this is on the thumb drive. We do send out our minutes by e-mail to those that have computers. Others we put paper copies in their mailboxes.

Wondering what other Associations feel about this coverage.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I would weigh the risk versus the benefit. There really isn't anything that should be held hostage a hard copy doesn't exist. The CC&R's and Articles of Incorporation are PUBLIC documents. The By-laws may be on file with the CC&R's but not always. The money is kept at the bank level. It's just financial reports. It's most likely no one is going to stop your operations if they froze anything. We self managed and did not see anything that would cause cyber fear.

It probably is not good to keep things on a thumb drive. They can introduce viruses. May want to see if can set up One Drive with Office 365. Keep things on the cloud. Otherwise, if there is something subject to a cyber attack, think about securing more hard copies instead of online.

Former HOA President

CathyA3 (Ohio)
Posts: 6,299

Posted:

Cyber insurance is recommended for any business that stores or processes sensitive information or publishes information (eg. a community web site). It protects you if your information systems are hacked (personally identifiable information gets stolen, which you'd need to inform the membership) or if you're sued over something that's published on your web site.

Since you say that you're self-managed, I'd say you should consider getting this coverage. In addition, board members and other "beneficial owners" are now required to report personally identifiable information, including things like driver's license number or passport number, to the federal governing thanks to the reporting requirements of the Corporate Transparency Act. (Yes, HOAs are required to report this info, at least until The Powers That Be get themselves organized and decide that HOAs shouldn't be subject to these requirements.) So you may have this information floating around as well.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I know you and me Cathy have a cyber security background. Having managed a self managed HOA, not sure if I see anything open threat to the HOA as a whole. Most likely they are using their own personal computers to store HOA information or in this case a flash drive. I would be more concerned about use of the flash drive and individual computers. The PII should be kept to a minimum. It should only be Name, Address, and phone number/email maybe. The HOA should NOT have Social Security numbers of any members. Plus sure they are using a bank account similar to how an individual uses one.

For me, I would take a closer look at existing cyber practices. That would tell me more about the need.

Former HOA President

WendyM5 (North Carolina)
Posts: 1,522

Posted:

waste of money.
just back up your files regularly both onsite and in the cloud somewhere. this coverage was included in our latest quote fromm natiowide. I dont' think they called out a fee for it, just included under general liabiity I think.

vis ta vie

LetA (Nevada)
Posts: 2,679

Posted:

Quite honestly, I would have a laptop that is for HOA business only and not use
a personal computer for HOA business. Aside from emails, all my emails to other board
members, the PM and residents are archived on my time machine. I too believe it is a good Idea
to put documents and such on a thumb drive as a hard storage. It is when cloud services come into play
when the risk increases and the possible need for cyber insurance.

MarshallT (New York)
Posts: 414

Posted:

Hi,

Perhaps you don't need that insurance next year, but at some point, it will be more beneficial to have cyber insurance than not have it. It sounds like you are doing a great job, but you won't ne the secretary forever. A new board might decide to keep information on the cloud (which is more practical), but of course there is a greater risk for a cyber attack when personal information is moved online.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here