Here are mistakes community associations can make in their insurance program
- Not Having Enough Insurance.Your community association should have an umbrella policy with at least a million dollar limit. Recently, a small child drowned in an association pool. The association was sued and lost a three million dollar settlement. An umbrella policy will protect your association from these kinds of events.
- You Have Not Considered Fidelity Insurance. Community association trust managers handle the day to day association operations, including the collection of rents and payment of bills. A local community association hired a manager to handle all their financial and accounting tasks. This manager embezzled over $350,000 over a period of 15 months. Without the proper fidelity insurance, this community association would have had a serious out of pocket expense.
- Do You Have The Right Kind Of Property Insurance? If your community association is located near a flood zone, you should carry flood insurance. Do you have loss of rents coverage? Loss of rents insurance will reimburse your association in the event that a covered loss causes an interruption of rental income.
- Directors and Officers Liability Is Often Overlooked. Directors and officers insurance covers costs, damages, and defense protection to directors and officers of a company resulting from law suits and judgments arising out of poor management decisions, and tenant issues.
- Have You Considered Tenant discrimination insurance? Tenant discrimination is a major issue for community associations, and an exposure not generally covered by general liability policies. Tenant discrimination insurance provides coverage for property managers when current, prospective, or former tenants allege wrongful discrimination.
- We have specialized in meeting the unique insurance needs of community associations and property managers for many years. We have assembled a team experienced in the real estate business to better serve landlords, developers, and property management firms.
Enhance Your Policy With Some of These Options:
- Employment Practices Liability can cover your business if discrimination, sexual harassment or wrongful termination claims are made by present, former or future employees.
- Life Insurance for Business Owners can help you plan for business succession, survive the loss of a key employee or partner and retain/reward your top people.
- Umbrella can shield your business from potentially ruinous lawsuits with additional liability coverage.
- Transportation and Cargo to cover against goods that are damaged or lost when transported by one of your vehicles or common contract carriers.
- Spoilage for perishable goods when they spoil due to a mechanical breakdown or power outage.
- Delivery/Catering Non-Owned Auto if an employee is involved in an auto accident while driving a personal automobile on company business, such as in a delivery or catering service.