Homeowner Associations »
Directors & Officers Liability Insurance
In a common interest development, leaders are chosen to help
facilitate and execute all Association business as well as
enforce all rules and regulations. In most common interest
developments the Association elects the Board of Directors
on a yearly basis. Properly run, this Board improves the quality
of living in the Association and protects the property value
of all unit owners. Directors & Officers Liability Insurance
serves to protect the Board as it acts on behalf of the Association.
A Directors and Officers Liability Policy is designed to protect
both a board member individually and the entire board should
they commit an “act, error or omission” which results
in a claim.
An association seeking coverage wants to look for a D&O policy
with a broad definition of the “Insured”. The best
D&O policies written for community associations will define
the insured as “any past, present or future duly elected
or appointed director, officer, or trustee of the Association.” The
definitions of “insured” should also include Association
employees, committee members, volunteers – and, equally
important, an extension of coverage to the manager or management
company.
The best D&O policies written for community associations will define the insured as "any past, present or future duly elected or appointed director, officer, or trustee of the Association."