Champaign IL Condo Association Liability Exposures

Champaign IL Condo Association Liability Exposures Champaign IL Condo Association Liability Exposures

Condo Associations play a vital role in the upkeep and oversight of Illinois condominium communities. Their primary function is to maintain the development’s common areas. Additionally, Champaign County condo associations are also responsible for setting certain rules that all residents must follow called covenants, conditions and restrictions (CC&Rs). Such rules may include physical and structural standards as well as conduct and habitual rules and regulations such as regulating whether you are allowed to line dry your laundry outside, whether you can have a satellite dish, the size and type of pets permitted. Condo owners must agree to adhere to the CC&Rs as a condition of residency in such a community in order to maintain the agreed upon air and atmosphere of the community.

While enforcing these policies and making decisions for the greater good of the community, a condo association and its members assume a certain levels 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. As such, it is important that Champaign County Condo Associations secure the proper liability protection for the entity as well as the board members.

One of the most important insurance policies in any Champaign County condo association’s insurance portfolio is Directors’ & Officers’ (D&O) Liability coverage. A good D&O liability insurance policy protects both past and present HOA board members, the property manager, employees, volunteers, and the community itself from lawsuits arising out of the management of the community association. This will often include a number of HOA-related issues, such as a new building project, a foreclosure against a property owner, and complaints filed by homeowners.

While it is highly unlikely that an individual association board member will be personally held accountable for an accidental injury to a resident in the swimming pool, board members can and frequently do face allegations of breach of duty or misconduct. 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. In these circumstances, a directors and officer’s liability policy will help protect both the board member and the association itself from bearing the financial burden of a legal battle, settlements and other fees associated with these allegations.

Apartment and condominium associations have broad property and liability insurance concerns, which fluctuate based on their charter and the size of their community. 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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