Condo Board

Why Your Condo Board Needs Directors and Officers Insurance

When you become a board member in your condo or homeowner’s association, you take on a lot of responsibility. The board is in charge of a serious fiduciary duty to its membership. They’re responsible for virtually all of the condominium’s important activities:

  • Managing the condominium’s assets
  • Directing operations and special projects
  • Hiring and overseeing staff and/or contractors
  • Deciding membership dues

When things don’t go as planned, despite everyone’s best efforts and intentions, condo boards can end up taking the brunt of the blame as well as significant liability exposure. Individuals who serve on condo boards aren’t protected from individual liability by their condo’s general liability insurance, so it’s essential to get additional directors and officers policy to adequately insure against potential liability claims.

According to, it’s a condo board’s expansive scope of activities and duties that expose it to so many different areas of liability and create the need for comprehensive condo board insurance. This type of coverage protects condo boards and its individual members in the event of claims related to breach of fiduciary duty, breach of contract, discrimination, or employment practices liability.

Ultimately, securing the right types of coverage is imperative for your condo association. In order to build a strong and engaged board, your condo board insurance coverage needs to adequately protect its individual members and the association as a whole.