Directors & Officers Liability
Top 7 Reasons to Choose Broader D&O Insurance for your Association
1) Manager/Management Company automatically named as an additional insured
Numerous package policies that include D&O do not include coverage for the management company, or may require a specific request and additional premium for limited coverage to be added, burdening the managers to track the additional insured status.
2) Defense Coverage Outside the Limits
D&O Claims costs can destroy the policy limit. The best practice is to purchase defense coverage outside the limit of liability rather than risk defense costs eroding the coverage limit
3) Full Prior Acts Coverage
Some D&O policies do not offer coverage for past acts that have occurred prior to the policy effective date. Full prior acts coverage automatically provides past acts coverage going forward.
4) Employment Practices Liability Coverage
Employment practice issues are a growing area of concern for Directors & Officers. Your policy should automatically include a separate limit for this coverage. If you have employees, this coverage should be mandatory.
5) Third Party Discrimination Coverage
The allegation of harassment and/or discrimination against an association member, vendor, or other third party can be costly to defend against. This coverage should be automatically included as part of your D&O policy.
6) Non-Monetary Coverage
Frivolous lawsuits tied to emotional loss as opposed to a specific monetary loss are on the rise. Non-Monetary coverage is a key component to a comprehensive D&O policy.
7) Breach of Contract Coverage
Most Community Association maintanence programs are administered by third-party contracted services. The increasing exposure for "breach of contract" issues between vendor and the community association can be costly and uninsured without the coverage for "breach of contract".