A unit owner is walking in a common area of your association such as a breezeway or the pool deck and they slip and fall on a slippery/wet surface. They sustain various injuries that require months of rehabilitation. You, as the association can be held liable for not properly ensuring the safety of residents and their guests. Your general liability policy will help defend the association and pay any money that may be owed to the plaintiff in the event you are deemed at fault. A client delivers product to your location for shipment. He trips and falls off your loading ramp, breaking an arm and both legs. Your client sues for medical bills (over $250,000 and lost wages (possibly infinite), alleging the hazard was inadequately marked. If you don’t carry General Liability Insurance, you would probably not have coverage for this.
Property damage claims take many forms, but typically are claims for damage to the building or association’s business personal property. Damage done to the association’s property is covered if the damage occurred because one of the covered causes of loss found in a section of the insurance policy. Some of the perils covered include damage done from fire, wind, collision, lightning, explosion, hail and other items outline in your policy.
Boiler and Machinery Claims
Boiler and Machinery insurance covers many types of equipment. It protects electrical systems, air conditioning and refrigeration, mechanical equipment, modern office equipment in addition to heating systems such as boilers.
Directors and Officers
Directors and officers Insurance (often called “D&O”) protects the associations board of directors, the officers and typically the property manager from claims of wrong doing. Some of the most common claims are for:
The Board’s failure to adhere to by-laws
The Board’s failure to properly notice elections
The Board’s failure to properly count votes/proxies
Breach of fiduciary duty
The Board’s failure to maintain common areas
The Board’s failure to properly disburse funds
Defamation by the Board of a member
Crime insurance coverage typically protects the association’s funds against fraud, forgery and theft. Some common examples are protection from loss from forgery or alteration of negotiable instruments such as checks, theft of funds by employees or board members, computer fraud, theft inside the premises and theft outside the premises.