Published: 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.