BettyO1 (California)
Posts: 104
Posts: 104
Posted:
What kind of insurance does an HOA need for coverage that reimburses the association for actions of directors that result in damage to common area? Would it be E&O or D&O insurance?
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Insurance Needs
Started by BettyO1 • 2 replies • 1257 views
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TimB4 (Tennessee)
Posts: 21,046
Posts: 21,046
Posted:
Betty,
D&O Insurance protects volunteers from personal liability for decisions they make while on the board. D&O insurance is in addition to the association's general liability coverage and covers board negligence, breach of fiduciary duties, etc., provided the errors or omissions were:
1) within the scope of the officer or directors' duties,
2) performed in good faith, and
3) not willful, wanton, or grossly negligent.
Here is a link Davis Stirling.com page defining D&O insurance (which is where the above statement was taken from).
Here is a link to their Insurance Page.
Typically, D&O insurance won't pay for the damage unless a legal action is lost. However, it may pay for the legal action. Board members need to check their policies for specifics.
Hope this helps,
Tim
D&O Insurance protects volunteers from personal liability for decisions they make while on the board. D&O insurance is in addition to the association's general liability coverage and covers board negligence, breach of fiduciary duties, etc., provided the errors or omissions were:
1) within the scope of the officer or directors' duties,
2) performed in good faith, and
3) not willful, wanton, or grossly negligent.
Here is a link Davis Stirling.com page defining D&O insurance (which is where the above statement was taken from).
Here is a link to their Insurance Page.
Typically, D&O insurance won't pay for the damage unless a legal action is lost. However, it may pay for the legal action. Board members need to check their policies for specifics.
Hope this helps,
Tim
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Insurance only covers specific things. You would have to call an insurance agent, tell them specifically what was damaged and how and ask them if there is insurance to cover this in the future.
Its possible, no coverage you have will cover this.
Its possible, no coverage you have will cover this.
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