Russell Bond & Co., Inc. January 2018  
 
Community Association Directors & Officers
Professional Liability

 
There are many changes happening to Community Association Directors & Officers.  A major carrier is pulling out of the marketplace, limiting options to find coverage for your clients.  Russell Bond is here to help!

As a board member of a community association, personal assets are vulnerable based on decisions and actions enforcing the governing documents, even long after the member has left the board.  Over 60% of claims against the board of a community association are related to non-monetary issues and can generate six figure defense costs and persist over many years.
 

Coverage features:

  • No exclusion for failure to maintain insurance claims (where available)
  • Defense for breach of contract claims
  • Defense costs for non-monetary claims
  • Defense outside the limit of liability - the cost to defend any covered litigation will not reduce your limit of liability
  • Lifetime Occurrence Reporting Provision - unlimited reporting extension for former directors and officers who are not on the board when coverage is cancelled or not renewed
  • Third party discrimination and third party harassment coverage (available for most classes)
  • Employment Practices Liability included for no additional premium for 10 employees or less
  • Automatic coverage for the property management company as an insured
  • Business Resource Center - free HR hotline with unlimited number of calls and no time limits plus discounted HR services such as background checks and online HR training modules
  
Community Assoc. Directors & Officers
Image courtesy of Ambro at FreeDigitalPhotos.net
  • Policyholders have access to many services through our Business Resource Center that will assist in growing and protecting their businesses

Claims Examples
Mismanagement of Funds: A Community Association Board of Directors makes assessments on its homeowners to cover unforeseen costs instead of collecting monthly dues. The Board does not believe in holding a large reserve of assets. The bylaws mandate that each owner comply with the decision of the Board. One homeowner ignored the numerous requests from the Board to pay the assessment. Finally, a lien was placed against the property. The homeowner countersued the Board of Directors alleging mismanagement of funds as well as libel and slander for printing his name in the association newsletter for being delinquent.

Breach of Contract: The Community Association Board entertained bids by companies to waterproof the deck around their pool. The contract was worth approximately $120,000. ABC Company submitted the lowest bid and was told the work would have to be started in three months and completed in two weeks. ABC Company bought a performance bond, blocked off the necessary time, and in so doing refused to take other jobs. The Board was having other work done around the pool and encountered problems. A week before ABC Company was to begin work the Board notified them they couldn't start and it might be another three months before they could come on the site. ABC Company sued the Board for breach of contract.

Bodily Injury: A guest of a unit owner trips and falls on the sidewalk maintained by the Community Association. It is found that the sidewalk was cracked 3 months prior to the incident. The Association was made aware of the hazard but did not correct the problem. The guest sued the Association for $6,500 in medical expenses sustained as a result of the injury.
 
Call us for more information:  800-333-7226
 
Tonya Hollederer Ed Chadwick Jackie Oddo
Tonya Hollederer, ext. 133
Team Leader
thollederer@RussellBond.com
Ed Chadwick, ext. 261
echadwick@RussellBond.com
Jackie Oddo, ext. 161
joddo@RussellBond.com
   
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68 Years
1950 - 2018
866 Ellicott Square Bldg.  |  295 Main Street  |  Buffalo  |  NY  |  14203
1670 Whitehorse - Hamilton Square Road  |  Hamilton  |  NJ  |  08690
Hampton Ponds Plaza # 12 |  1029 North Road  |  Westfield  |  MA  |  01085
800.333.7226  |  www.RussellBond.com  |  Fax: 800.677.6779
Trusted since 1950