Directors and Officers Liability Insurance
Directors & Officers Insurance policy protects and provides your board members, employees and volunteers, the security of knowing they are Personally protected in the event a lawsuit filed by any unit owners, vendors, or outside contractors against them. Directors and Officers liability insurance policy covers defense costs, and pay for damages awarded by the court arising out of the wrongful act by the board members and officers of your association. These types of claims have become increasingly common within association located in Florida.
What does Directors and Officers Liability Insurance Policy cover?
Prior Acts – Covers prior acts as long as the board members are not aware of any previous incident before inception date of the policy.
Spouses – This policy extends liability coverage for spouses of board members and Officers of the association.
Defense Cost- is included to cover expensive lawyer’s fees, investigating expenses, and court cost.
Prior and Pending Litigation – prior and pending litigation date is covered with proof of expiring policy.
Failure to Obtain Insurance – board members can be sued for failure to obtain proper insurance coverage.
Duty to Defend – A local defense attorney experienced in directors & officers lawsuits will represent you.
Property Management Coverage – The association property manager is included in coverage as an additional Insured.
Breach of Contract – D&O policy provides coverage for third-party breach of contract claims against your association.
7 Steps to avoid Directors and Officers Liability Insurance Claim
- Follow the rules – board members are required to read and understand the by-laws of their community.
- Use Professional help – association must retain a professional attorney to review and update the by-laws periodically and as needed; also hire a licensed and experienced property manager to manage the association.
- Keep by-laws current – it is recommended to review the current by-laws and update association rules as needed periodically.
- Elect qualified board members – it is recommended that all new board members read the by-laws and get proper training in interpreting the laws when needed.
- Do not use your personal emotions – do not use your emotions when running the meeting or dealing with the members, because it might create personal conflicts and cause unit Owners to file a claim against you.
- Keep good records – Keep proper records of all association meetings and complaints, with all vendors doing business with the association, also policy records from current insurers and outside contractors.
What to do next to get directors and officers Insurance quotes?
If you are searching for a proposal for directors & officers liability insurance quotes, call G. Zein Insurance Services now or prior to renewing the current policy at (954) 454-9599 or (866) 454-9555, we are here to answer your questions and help you find a Solution.