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Homeowner Associations » Professional Liability

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."

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