Condo Association Directors & Officers Liability
Being elected to serve on the board of your condo association can be viewed as a great honor or a dreadful burden. Those who look for the positive in any new situation will focus on the fact that their neighbors have confidence in their leadership abilities. Those who view the glass as half empty will grumble and say why me? Whatever their attitude toward this necessary function, all new board members have one thing in common: Unlike other shareholders who haven't accepted a position in the spotlight they now run the risk of being sued because they've assumed professional and fiduciary liability.
Directors' and officers' (D & O) insurance is a policy that protects corporate directors and officers, while they are in office, against monetary damages incurred through lawsuits resulting from their actions as board members. With proper D & O coverage in place, board members can relax and concentrate on doing the best job possible.
A type of liability insurance covering directors and officers for claims made against them while serving on a board of directors and/or as an officer. D&O liability insurance can be written to cover the directors and officers of for-profit businesses, privately held firms, not-for-profit organizations, and educational institutions. In effect, the policies function as "management errors and omissions liability insurance," covering claims resulting from managerial decisions that have adverse financial consequences.
Coverage for defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organizations board of directors and/or officers.
***To make this a bit easier to understand, Trustees with Condo Associations make decisions while managing, hiring contractors, paying bills, etc. D & O Liability Coverage protects these types of duties and responsibilities in the event of a liability suit brought against the Condo Associations.