Cyber Crime Insurance
Homeowner associations are increasingly vulnerable to liability for cybersecurity breaches involving electronic data. Their files may be compromised or lost by viruses, hackers, and cyber thieves. It can also be lost through old-fashioned theft of computers, laptops, flash drives, and smartphones. See the 2018 Survey of Cybersecurity in Community Associations by the Foundation for Community Association Research. "Cyber Crime Insurance" covers security breaches and losses from internal or external threats to an association's internet and networks. Coverage may include:
- financial losses
- costs related to notifying members of a breach
- lawsuits resulting from a data security breach
- errors and omissions by an association
- business interruption
- data restoration
- privacy liability
Insurance Review. Cyber insurance varies widely from company to company, and boards should inquire about coverage to ensure it's appropriate for their needs before purchasing a policy.
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