Champaign Condo Association Exposures

Champaign Condo Association ExposuresCondo associations play a vital role in maintenance and oversight of their properties. As they are responsible for the upkeep of common areas and setting the covenants, conditions, and restrictions (CC&R) for residents, these associations face plenty of inherent risks on a daily basis. Because of this, a comprehensive Champaign Condo Association Insurance package is required to mitigate loss and provide the financial assistance needed to settle claims.

While enforcing these policies and making decisions for the greater good of the community, a condo association and its members assume a certain level of responsibility and exposure to liability claims against them should there be any misconduct of failure to perform their duties. While the association itself is a distinct legal entity, not unlike a non-profit organization or a business, and therefore absorbs the majority of legal accountability for property damage, injury and other losses suffered by residents or third parties, the individual board members do face certain liability exposures of their own. Therefore, liability protection for board members and the actual entity are required.

A Directors’ & Officers’ insurance policy (D&O) protects past and present board members, property managers, volunteers, the community itself, and the employees. A good policy will also extend coverage to HOA-related issues such as complaints filed by homeowners, defaults on new projects, and more.

As board members commonly face claims of misconduct or a breach of duty, it’s important to provide the necessary protections. In addition, condo association board members are typically only personally liable for HOA matters if the member breaches his or her fiduciary duty to the HOA and are proven to have acted with negligence, willful misconduct, bad faith, or outside the Board’s authority, says Nolo. As such, the proper insurance policies can provide the necessary protection and financial assistance to any claims arising from the above mentioned issues.

At Myers Insurance Group, we specialize in helping community associations throughout Champaign County find comprehensive insurance solutions. Our Champaign IL Condo Association Liability specialists can help secure customized coverage to fit the needs of your unique operation. To learn more about our operation, give us a call today at (855) 534-5707.

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