Master Associations Need Supplemental Legal Defense Insurance
Although many community associations carry directors and officers (D&O), general liability and property insurance, these policies often fall short in legal representation due to a variety of gaps and loopholes in their coverage.
Protection Against Liability
Board members of a master association can often be held liable for decisions made by sub-associations. D&O insurance is supposed to protect board members against these specific types of claims. However, not all community association claims are covered. For example, lawsuits alleging intentional misconduct by a board member may fall outside the policy’s protection. This can leave the association responsible for legal expenses. Supplemental legal defense insurance can protect members against financial loss resulting from claims made against them. This can encourage individuals to serve on the board without fear of personal repercussions.
Access to Experienced Legal Counsel
Having supplemental legal insurance means access to specialized legal counsel experienced in master associations-related matters. This can be invaluable when dealing with complex legal situations, providing peace of mind to the board members and those involved.
Cost-Effective Risk Management
Investing in supplemental legal insurance is a proactive approach to risk management. By ensuring that legal defense costs are covered, the master associations members can prevent unexpected expenses that could strain their finances. This helps maintain a stable budget and minimizes the likelihood of special assessments.
The complexities of managing homeowner associations require a robust legal strategy to protect the communities and their leaders. Supplemental legal defense insurance is an essential component of that strategy, offering protection against legal risks, ensuring access to expert counsel, and providing peace of mind for both board members and residents. By investing in this type of coverage, master association members can navigate the legal landscape with confidence and continue to foster vibrant, thriving communities.
There is no better way to ensure the financial security of your community association than adding a BOLD Supplemental Legal Defense Insurance Policy. Rely on us to enhance your insurance and risk management program and enjoy complete peace of mind knowing you are fully protected and comprehensively covered.