Sitting on the board of a condo association is a challenging task. Board members aren’t compensated for their service to the association, and everything that they do can be subject to strict scrutiny. They must exercise their best efforts to keep condo buildings in good shape physically and financially. Having comprehensive insurance is essential to protecting your building’s assets.
Ensuring the Physical Premises
It’s imperative that a condo association be able to address any damage that the building sustains. Not having adequate insurance could make physical damage a terribly costly problem. Examine your current policy to make sure that you understand your coverage limits and exclusions for physical damage.
Ensuring the Association Against Premises Liability
An accident that happens in the common area of a building could result in a legal claim against the association based on premises liability. In addition to adopting a comprehensive maintenance and risk management plan to mitigate the risk of an accident, board members should ascertain that their condo association insurance will provide adequate protection in the event of a claim.
Safeguard Board Members
Board members could be subject to personal liability related to their service. A director’s and officers’ policy will provide a vital safeguard if there is a legal action against one or more board members.