Why Condo Associations May Benefit From Directors and Officers Liability Insurance

Every condo association, no matter how large or small, could potentially benefit from getting D&O insurance for condo assocations. These associations typically work to oversee condo communities, which may leave them vulnerable to management-related lawsuits. By getting D&O, or directors and officers, liability insurance, condo associations can get covered for these potential risks.

It Helps Mitigate a Range of Management Liability Exposures

Due to the nature of management, directors and other association officials may be exposed to a number of liabilities that could result in expensive lawsuits without insurance. These liabilities, which D&O insurance may cover, include:

  • Breach of contract
  • Wrongful eviction or foreclosure
  • Discrimination and employment practices liability
  • Fiduciary duty breach

It Could Offer Protections for Directors, Committee Members and More

Despite its name, D&O insurance doesn’t just strictly cover directors and officers. In fact, many D&O policies can offer protections to association members, community members and more, including but not limited to:

  • Directors and officers
  • Volunteers and employees
  • Board trustees
  • Committee members
  • The community association at large

Having thorough D&O insurance for condo associations can help protect both board and community members, and may be a useful tool in mitigating common management liability exposures. If you run a condo association, consider looking into D&O insurance today.