All Associations carry various policies of insurance to protect the Association, the Association’s property, and the Association’s Board of Trustees. The Community’s documents will specify the policies to be carried. Although, each policy of insurance has its place, the three most important policies are the Association’s Property Damage Policy, the General Liability Policy and the Directors & Officers Errors and Omissions Policy (D&O Policy).
The Property Damage Policy typically insures the Association against loss by fire, lighting, windstorms, and other risks, including vandalism and malicious mischief. It covers the Association’s property as well as the Association’s common personal property and supplies.
The General Liability Policy provides insurance and defense of the Association for personal injury and death claims arising from accidents occurring within the common elements. As well this policy provides for insurance and defense of any actions brought against the Association for damage to property occurring within the common elements.
The Directors & Officers Errors and Omission Policy (D&0) indemnify Trustees and officers of the Association against liability for errors and omissions which may occur in connection with the performance of their duties.
Whether the Association is a claimant or has been served with a claim by another, it is imperative that the Association’s insurance agent and insurance carrier be noticed. There is an obligation on the Association, as the insured, to inform the insurance carrier once it has been noticed as to a claim or even a potential claim. Failure to timely report may allow the insurance company to disclaim coverage.
Our Firm has been very instrumental in presenting Association’s claims to insurance agents and insurance carriers since its inception. We strive to present all claims in a way which allows the carrier to immediately come to a coverage determination favorable to the Association. When a claimant targets the Association, we engage in highly substantive discussions with the carrier’s claim adjuster and wherever possible assist the carrier with selection of Association Defense Counsel. Experience clearly shows that claims involving Community Associations require a defense Attorney knowledgeable in Community Association governance as well as applicable statutory and case law. We provide background and supporting information/documentation to Association Defense Counsel so as to assist Counsel in obtaining a favorable result for the Association.
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