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.