Board Members Are Taking on Complex Responsibilities Within Associations

// March 4, 2021
Reading Time: 3 minutes

Volunteering as a board member can be a rewarding and engaging experience. People who volunteer for these positions usually do so with the best intentions, but with responsibility comes the reality that claims can arise.

Condominium, co-op and homeowner’s association boards are just a few examples of associations that should make sure their board members have directors and officers (D&O) coverage in place. Not only is it important to protect the rights of a community member, but also the board member’s individual assets. USLI has a comprehensive product to protect a board and its members from exposures that arise from community association D&O claims.

COVID-19 has required community association boards to pivot and focus largely on maintaining healthy, safe environments for residents. Quarantine regulations have also changed the way people view their communities. Board members are spending more time at home and paying closer attention to their surroundings while community members are becoming more aware of changes and issues in their communities.

Because of this, claims may arise from the improper handling of closures and maintenance for pools, business centers, clubhouses and fitness centers. Also, the requirement of masks in common areas has become a prominent issue. These are just a few examples of problems that board members are experiencing, and they need the right insurance coverage in place in the event of a claim.

Some of the previously mentioned responsibilities can start to become complex for directors and officers. In these situations, it’s common for a board to bring in a property manager to help with maintaining the association. Our product includes automatic additional insured status for property managers. Over 330,000 community associations nationwide are required to carry D&O insurance, and property management companies are a great way to access numerous potential policyholders at one time.

Below are some product advantages offered through our Community Association D&O product:

  • Unlimited defense costs outside the limit of liability
  • Defense for breach of contract
  • Coverage for both monetary and non-monetary claims
  • Lifetime Occurrence Reporting Provision
  • Manager/Management company automatically named as an additional insured
  • Full prior acts coverage
  • Third-party discrimination and third-party harassment coverage (applicable classes)

We pride ourselves in our stability, comprehensive coverage, competitive pricing and unparalleled service. We have multiple quoting options to make doing business easy. Reach out to your Professional Lines underwriter today to discuss our Community Associations D&O product.

As always, thank you for your support and business.

Contact Doug DeAntonio
Assistant Vice President, Underwriter | 888-523-5545, ext. 2257

Written by Erika Cordivari
March 4, 2021