The importance of Directors and Officers Insurance cannot be overstated. The reality is we live in a litigious society and the thankless job of being a member of a Board of Directors is often marred by legal proceedings.
Condominiums, cooperatives, and planned communities each function as a business, government, and community. Each function can lead to property, liability, net income, and personnel exposures to loss.
Realty Times was quoted saying that Boards of Directors face legal action on an ongoing basis in the form of, "owners against other owners; owners against their Board of Directors, Association against owner, and even one Board member against another."
To break the need for D & O Insurance down to the simplest level, it covers you from the above listed lawsuits. The insurance covers your legal needs- lawyers, court costs and the rest of your defense team- and any monetary damages you may be liable for.
It is important to use insurers that are of of satisfactory legal and ethical standing in the industry and five years experience in the community association insurance field.
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