If you are familiar with Community Associations, you know the turnover of board members and homeowners can be as little as a few months or it can be years.

These changes mean the Directors and Officers of the Board of the Community Association can be liable for claims long after they leave a board. All Access Insurance has partnered with United States Liability Insurance Group (USLI) on a Community Association plan that has a unique Lifetime Occurrence Reporting Provision. This means that former Directors and Officers automatically receive an unlimited extension of protection from claims if the new board elects to cancel or non-renew their coverage. This is a notable feature providing the advantages of occurrence coverage under a claims-made policy and protects the personal assets for former board members. Some of the features of this plan are as follows:

• Lifetime Occurrence Reporting Provision is a unique feature not commonly found in directors and officers policies
• Automatically included for no additional premium
• Applies to all individual insureds
• Provides former board members peace of mind for their decision and actions in the event that their successors non-renew their directors and officers Liability policy and fail to secure coverage going forward.

So let's look at an example:

During a board's term, the President of the Community Association signed a contract on behalf of the association with a handyman service for 3 years. Six months later, she sold her house in the development and resigned from her board position. After the second year of the contract, the new board has issued multiple notices to this handyman service regarding inadequate repairs and poor service. Eventually, the new board decided to terminate the handyman service because of their dissatisfaction  with the management service. The handyman service shortly thereafter filed a suite naming all past and president board members, alleging breach of contract because it was not give appropriate notice based on the original three-year agreement. The former President discovered that the new board failed to renew their USLI Directors and Offices liability policy after she moved and resigned from the board. The board never secured other liability insurance. Under our "lifetime occurrences reporting provision", the defense costs of the former President and the other former officers and directors named in the suit were covered for the claim, because they had this policy while on the board and were not part of the board when the decision was made to non-renew the policy. The board that non-renewed the USLI Directors and Officers policy had no coverage.   Keeping your protected.   Rick   All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial, workers compensation, and much more! Call us today for a free quote at (303) 932-1700