Addressing the Greatest Cyber Liabilities of Condo Associations

Whether it’s artificial intelligence-based hacking attempts, spoofing, or social engineering during the next presidential election in the United States, cyber threats are expected to continue to grow and developer heading into 2020. And while the possibilities are endless as far as how these threats are manifested, they all have one thing in common: they’ll target anyone and anything.

Cyber liabilities are becoming a problem for everyone from small business owners to major banks to libraries to individuals with a social media account. So, when it comes to the digital well-being of condo associations, the target on their back is no smaller.

Associations need to be thinking about ways to protect their communities and the people in them through condo association cyber liability insurance and other means as this year ends and a new one begins.

Here are some liabilities that condo associations face when dealing with cyber threats.

Third-Party Risks for Associations

Risks can come from inside a community, like a user error or mishandling of data security. But third-party vendors, such as landscapers, general contractors, and cleaning companies, among others, can pose just as much risk when it comes to cyber threats.

Any third-party vendor that logs into a system represents a potential cybersecurity threat. Even if they have access to the code that opens the condo association’s main gate or door, that could be enough for hackers to step in—literally—and get what they need.

Outside vendors can only be controlled so much. Condo association leaders can’t spend time hovering over them to make sure they aren’t making mistakes. Association leaders have to stay connected to tactics like user error as well as more sophisticated methods, such as social engineering. Social engineering uses fake login screens and websites that appear to be authentic, but really only exist to extract login information from users.

No matter how strong a cybersecurity system is, a condo association’s staff and third-party vendors can be duped into clicking a harmless-looking yet malicious link that reveals their login information.

Cutting Down on Cybersecurity Risks in Condo Associations

Leaders of condo associations can help reduce their vulnerabilities to cyberattacks by practicing certain cyber hygiene steps.

First, users can utilize strong passwords that are changed frequently and create separate login information for each online account. Next, condo associations can employ two-factor authentication, which requires a login and a code sent to a phone.

Additionally, staff should be trained to stay current on the latest cybercrimes and social engineering schemes. This information should be covered in regular meetings and memos, allowing for feedback.

Cyber Liability Insurance for Condo Association

While using cybersecurity software to protect a network, having additional support following a potentially costly loss, like with cyber liability insurance, can save time and money. This kind of coverage can protect against theft, loss, or unauthorized disclosure of sensitive data.

It has other protective benefits that can keep an association safe from further damage, such as denial of service attacks, unauthorized access of data, and viruses transmitted from a computer system.

Having this kind of protection as well as the education around the threats that a condo association faces every day can help reduce risks in real-time as well as major claims related to loss of data.

About American Team Managers Insurance Services

Founded in 1998 by Chris C. Michaels, American Team Managers Insurance Services (ATM) has provided wholesale and MGA services to more than 5,000 independent insurance agents throughout the United States. Our goal is to establish close, long-term relationships with our agency partners and insurance carriers and provide competitive products for the Exclusive and Non-Exclusive markets that we serve. For more information on our products and services, give us a call at (877) 671-7503 to speak to a representative.