Liability Insurance and Policy Features for HOAs

Non-Profit Management and Organization Liability Insurance

for Community Associations

Policy Features:

·         Duty to defend

·         Claims made – reported as soon as practicable

·         Broad definition of claim including non-monetary claims

·         Full prior acts coverage

·         Entity coverage (the organization and its non-profit subsidiaries are insureds)

·         Coverage for directors, officers, trustees, employees, volunteers and committee members

·         Spousal extension

·         Employment practices liability (EPL) provides coverage for discrimination, sexual harassment and wrongful tem1ination; also includes coverage for mental anguish and emotional distress

·         No exclusions for anti-trust, libel, slander, defamation, publishers’ liability, copyright infringement, or insured vs. insured

·         Severability of exclusions and warranties, with certain exceptions

·         Bi-lateral discovery

·         Policy can only be cancelled by insurer for non-payment of premium (if l year policy)

·         Automatic coverage for new non-profit subsidiaries with up to 20% of insured’s revenues

·         For-profit subsidiaries can be added by endorsement

·         Extended discovery period (multi-year discovery periods available)

·         30 days to elect to purchase discovery period

Liability Insurance and Policy Features for Condos and HOAs

·         Defense coverage for allegations of the insured gaining any profit, remuneration or advantage to which such insured was not legally entitled to unless proven by judgment

·         Defense coverage for allegations of dishonesty/fraud unless proven by judgment

·         Defense coverage for contractual claims

·         Punitive damages are covered if insurable under state law

Available by endorsement, if applicable:

·         Coverage for representative of builder/developer while acting as member of association board

·         Coverage for independent management company/property manager

Published by Ken Davis Insurance Services