If you’re part of a Homeowners Association and think you don’t need Management Liability, you should really think again.
Management Liability can include liability coverage for directors & officers, employment practices, crime, dishonesty, and even fiduciary liability to protect those who are entrusted with protecting funds in an employee pension plan.
But why would a Homeowners Association need any of these things?
- It can cover a claim that a prospective home buyer was discriminated against and offered a higher price, or that their purchase of the home was prevented altogether because of alleged discrimination.
- It can cover a board member if a decision is made to use a certain contractor to maintain a common space, and then that contractor is found to have had a history of negligence that the board member overlooked or failed to discover.
- Directors and Officers Liability can cover claims brought against board members for allegations that bylaws were not properly adhered to.
While coverage costs may vary, all it would take is a single lawsuit to undoubtedly put you far over the cost of your premium in defense costs – even if you did win. In an age where lawsuits are becoming more common every year, you could protect yourselves and your personal assets for a relatively small amount.