Condominium association directors and officials are members of the community who donate their time to ensure the efficient operation of their neighborhood. However, what appears to be a fantastic opportunity to protect the community can also be a significant personal risk.
This is not a risk to be taken lightly, especially because litigation can easily exceed $100,000.
Have a Good Defense
Fortunately, a legal remedy can help condominium associations safeguard their board members if a lawsuit is filed against them. Condos might purchase directors and officers insurance for condo associations to protect their board members’ assets.
The board member’s defense against the liability claim may be covered by directors’ and officers’ insurance. If they are determined to be at fault, it can also pay for damages or settlements.
Who Is Suing?
Neighbors make a huge number of claims against individuals in control of a condominium association which makes having directors and officers insurance for condo associations important.
A condo association member, for example, might sue the board of directors for breaking its own rules by selling parking spaces to non-owners. Non-owners were able to purchase a portion of the communal parking lot, resulting in a parking shortage for condo owners in that unit.
It’s hard to forecast when allegations against condo board members will arise, just as it is with other litigation. Having directors and officers insurance for condo associations on a board can help to protect a condo association’s future by allowing members to volunteer their time without feeling personally in danger.