Condominium board members play a crucial role in managing and overseeing the affairs of their condo association. While they make decisions to benefit the community in and around West Chester, PA, their roles come with specific responsibilities and potential liabilities, and they can face legal and financial risks.
Why Condo Board Members Need D&O Liability Insurance
- Protection Against Legal Claims: If a board member is sued for a decision they made or an alleged wrongful act, D&O liability insurance can cover legal defense costs, settlements, or judgments.
- Personal Asset Protection: Without D&O liability insurance, board members could be personally responsible for legal expenses and financial liabilities resulting from lawsuits.
- Attracting and Retaining Talent: Having D&O liability coverage in place can make it easier to attract and retain qualified individuals to serve on the condo board.
Critical Considerations for Condo Board Members
When obtaining D&O liability insurance, condo board members should consider the following:
- Coverage Limits: Ensure that the coverage limits are sufficient to protect against potential claims and liabilities. Coverage limits can vary, so selecting an appropriate level of protection is crucial.
- Policy Exclusions: Review the policy to understand what is and isn’t covered. Some guidelines may have exclusions, so read carefully.
- Legal Defense: Confirm that the policy provides coverage for legal defense costs, as these can be a significant expense in the event of a lawsuit.
- Retroactive Date: Pay attention to the retroactive date on the policy. This is the date from which coverage begins, and it must cover any prior acts or decisions made while serving on the condo board.
Griffith Insurance LLP Can Help You
At Griffith Insurance LLP, we can help answer questions concerning condo insurance. We serve the West Chester, PA area. Contact us today.