Friday, September 26, 2014

Are you a Board Member? Get D&O before you say Uh Oh!

Are you a Board Member flapping in the wind of Liability because you dont have any Directors and Officers (D&O) Liability Insurance?

Every director and officer of a homeowner association board has personal responsibility for HOA business. The basic purpose of Directors and Officers insurance is to protect directors and officers from claims made because of wrongful (or allegedly wrongful) acts or omissions made while acting in their individual or collective capacity on behalf of the homeowners association.

GENERAL LIABILITY INSURANCE...
will not protect directors and officers in the same way. This insurance is to cover against third party bodily injury and property damage. Directors and Officers insurance covers against third party financial damages and other claims not covered under General liability.

Here's a list of scenarios in which directors and officers have liability:
  • Continuing a wrongful practice after learning it's wrong
  • Libel or slander
  • Failing to pay HOA debts in a timely manner
  • Improper management resulting in losses
  • Receiving personal gain while performing as director or officer
  • Making decisions based on adequate information and advised judgment
  • Ignorance of HOA books and records
  • Verifying content of official documents before signing
  • Obedience to the governing documents
  • Self dealing
  • Aiding and abetting illegal actions of others
  • Conflict of interest
  • Carelessness in conducting business or legal matters
  • Failing to see what could be seen by merely looking
  • Inducing intentional or careless wrongdoing
  • Ignoring statutory or regulatory requirements
  • Insufficient oversight of officers or employees
  • Nondisclosure of questionable or unlawful actions
  • Willful wrongdoing 


  • Why you need Coverage:
    https://www.travelers.com/business-insurance/management-professional-liability/private-non-profit/directors-officers/documents/59651.pdf
    Other Claim Examples:
    https://www.travelers.com/business-insurance/management-professional-liability/private-non-profit/directors-officers/documents/59651.pdf

    http://www.insurancejournal.com/magazines/features/2012/04/02/241157.htm  

    More Info: 
    https://www.travelers.com/business-insurance/management-professional-liability/private-non-profit/community-homeowners.aspx

    If you have any other questions, Please give me a call.

    Michael Fillers, CPIA
    Morris Insurance Agency, LLC
    3032 Dauphin Square Connector
    Mobile, AL 36607
    O - 251-473-5119
    F - 251-473-6301
    C - 251-753-8011
    How I met JESUS in the flesh and HE saved me:
    Matt 24:46-47
    "Blessed is he whom his master will find at work when he arrives. Truly I tell you, he will put that one in charge of all his possessions." 

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