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Directors and officers liability insurance for property managers, condominium associations and homeowners associations

Directors and officers liability is an often overlooked, yet vital coverage policy that is beneficial for for condominiums, co-op's and homeowners associations.

Agents, association members and property managers should treat directors and officers liability with as much attention as they would with general property or liability insurance.

While property and general liability coverage are the first plans that come to mind, directors and officers liability coverage must be treated as more than just an additional coverage option.

Directors and officers liability provides protection for the directors and officers of your association in the event they are sued in conjunction with their performance as association members. It can essentially become a lifesaver due to the protection it provides.

Two of the most common directors and officers liability claims are non-monetary and discrimination claims.

A discriminatory claim has nothing to do with race, gender or sexual preference. Rather, it is when a property manager or member of the homeowners association notes a number of specific differences regarding a homeowner's property, such as painting one's home a different color or building a fence around the property that does not comply with the homeowners association standards.

For example: a past board member may have allowed the homeowner to use that paint color or build that fence and if the current board member forces said homeowner to re-paint their home or pull down that fence, that board member/property manager may end up with a hefty discrimination suit on their hands.

A non-monetary claim is a different matter altogether, but one that can wind up just as, if not more, costly.

An example of this type of suit would be if the homeowners association or property manager removes an appealing aspect of one's neighborhood such as a picturesque lake or garden that would potentially increase property value. If a homeowner feels that the removal of the lake or garden significantly damages property value, but does not put a number on that loss in value, a director & officers liability package would help defend against the claim.

Unfortunately, we live in a time when lawsuits are daily occurrences, and without the proper policies in place, past and present homeowners association board members may be liable in a directors and officers liability suit.

Not all directors and officers liability policies are the same.

There may actually be a broad range of discrepancies amongst different policies in terms of what each policy covers and excludes. It's important to review each policy carefully with your insurance agent to understand every detail.

Pettineo Insurance Agency Inc. provides directors and officers liability insurance in Fort Lauderdale, Lauderdale-By-The-Sea, North Lauderdale, Pompano Beach, Oakland Park, Boca Raton, Deerfield Beach, Hollywood, Sunrise, Coral Springs, Pembroke Pines, Sunrise, Tamarac, Plantation, Lighthouse Point and all of Florida.

Disclaimer: Insurance coverage cannot be bound or changed via submission of any online form/application provided on this site or otherwise. No binder, insurance policy, change, addition, and/or deletion to insurance coverage goes into effect unless and until confirmed directly by a licensed agent.