Condos help individuals purchase their living space in dense metropolitan areas without moving to the suburbs or paying for expensive housing near the city center. Most condominiums are run by associations. Condo association directors & officers liability insurance offers financial protection for the condo in the event of a lawsuit.
Condo associations have an advisory board representing the association and making decisions on its behalf. A resident or employee of the association can file a claim against one of the board members for a variety of reasons. One lawsuit can cause financial problems for the association as a whole.
Directors and officers liability insurance typically covers financial losses from a claim filed against a director or officer of the condo association. Most policies cover the legal costs associated with a lawsuit including awarded settlements.
A director or officer of the condo association who commits fraud, misuses funds, fails to comply with workplace laws or misrepresents the assets of the association can be sued. The claimant can sue both the offending person and the association for financial damages.
Protect the condo association and the tenants with condo association directors & officers liability insurance. While the association serves the condo residents, lawsuits can happen and provide a need for liability protection.