Why To Buy Directors & Officers Coverage for Community Associations
March 18, 2015
- Even the simplest of disagreements can quickly turn into large
- demands. Directors and Officers claims are not commonly covered
- under General Liability or any other policy form
- The board of a Community Association can be sued for a number
- of reasons including, but not limited to, Breach of Contract, Non-
- Monetary Damages, Mismanagement of Funds, and Third Party
- Discrimination.
- Community Association boards can be sued by employees, vendors,
- and even members or neighbors.
- The bylaws of the Association may indemnify the board but do
- not guarantee the entity has the resources to fund the cost of a
- claim. The financial backing of a Directors and Officers policy will
- help ensure financial solvency.
- A former member of the board may be named in a suit regarding
- an incident that took place while he or she was serving as a
- Director or Officer. We provide a Lifetime Occurrence Reporting
- Provision within our form.
- Defense costs are a large loss expense in Directors and Officers
- claims. We provide defense costs outside of policy limits.
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