Timeshares are increasingly vulnerable to cyber-attacks and the resulting litigation, government fines, and data breach response expenses. Our office has more than 40-years of experience writing timeshares and we understand the unique risks.
As the cost of cyber risks rise, hackers are getting more adept necessitating more effective security measures and the need for a proactive insurance program.
In the case of a breach or network security loss, a Cyber Risk insurance policy should include coverage for the following costs:
- Credit Monitoring, Notification, and Forensic
- Business Interruption, Data Recovery
- Regulatory Fines
- Third-Party Claims Defense
- Public Relations and Crisis Management
Members of the Board of Directors may be held liable
If a cyber assault occurs, timeshare associations and their board members may find themselves responsible. In addition, if money or personal information are stolen owners may be entitled to compensation. There is also the cost of defending potential lawsuits, as well as damage to the association’s brand. If the targeted organization has failed to comply with state data-protection statutes, penalties may be imposed.
It’s critical to meet with your insurance broker and discuss cyber coverage. Don’t be fooled if you notice cyber coverage included as part of your General Liability, Directors & Officers, or Crime policies as it usually comes with a sub-limit (a limitation in an insurance policy on the amount of coverage available to cover a specific type of loss – usually a significantly lower limit of coverage). Protect your community and yourself. Consider including Cyber Insurance as part of your organization’s insurance package.