Call Us (561) 994-0880 ☰ ˟
(561) 994-0880 info@parkassociates.com
Park & Associates
Client Portal  Request a Quote
  • HOME
  • Get a Quote
    • Business & CommercialImage of right arrow
      • Business Quote Request
      • Cyber Liability Quote Form
      • EPLI Insurance Quote Form
      • Professional Liability Quote Form
    • Association InsuranceImage of right arrow
      • Association Insurance Quote
      • Commercial Real Estate Insurance Quote
    • Umbrella InsuranceImage of right arrow
      • Umbrella Insurance Quote Form
    • Flood InsuranceImage of right arrow
      • Flood Quote
    • Homeowners InsuranceImage of right arrow
      • Home Quote Request
      • QuoteRush for Home Insurance
    • Auto InsuranceImage of right arrow
      • Auto Quote Request
    • Contractor InsuranceImage of right arrow
      • Contractors Insurance Quote
    • Preschool InsuranceImage of right arrow
      • Preschool Insurance Quote
  • ABOUT US
    • About Us
    • Employee Directory
    • Location Map
    • Privacy Policy
    • Testimonials
    • Giving BackImage of right arrow
      • The MSA Coalition
    • Letter of recommendation
  • CUSTOMER SERVICE
    • Client Portal
    • File a Claim
    • Request Declaration and Coverages
    • Request ID Card for Auto Policy
    • Request Proof of Insurance
  • MAKE A PAYMENT
  • RESOURCES
    • View our Blog
    • Insurance Glossary
    • Newsletter Archive
    • Refer a Friend
    • Request A Quote
    • Proof Of Insurance
  • CONTACT
    • Contact Us
    • Join Our Blog
    • Join Our TeamImage of right arrow
      • Join Our Team
Association Insurance Icon Business Insurance Commercial Real Estate Insurance Icon Association Insurance
Preschool Insurance Icon Preschool Insurance
Contractor Insurance Icon Contractor Insurance
Homeowners & Car Insurance Icon Automobile Insurance Flood & Umbrella Insurance Icon Homeowners Insurance 
Home > Blog > Homeowners Association Insurance Responsibilities - Part 3 of 3 Series
FRIDAY, AUGUST 28, 2020

Homeowners Association Insurance Responsibilities - Part 3 of 3 Series

To wrap up the last part of this series, I want to focus our attention to some of the most important coverages not yet discussed as it relates to your HOA… Directors & Officers (D&O), Crime, and Workers Compensation Insurance. While these coverages are sometimes discussed as ancillary, our opinion is that these are just as important as any other insurance you buy.

D&O coverage is meant to cover actions and decision made by the elected officers of your association. The concern is that your associations officers can be held liable for their actions and decisions while acting in that capacity. This can be somewhat surprising to most board members as they are often acting in what they think is the best interest of their community. Regardless, while serving on a board or even after your term is over, you can still be held liable. This is where D&O coverage comes into play. Without this important coverage, you could be held personally liable in the event of a lawsuit. This means your personal assets would be the only potential remedy source.

The need for crime insurance stems from the potential for association officials dishonesty or the dishonesty of others in the handling of escrowed funds to be used for association purposes. Say, for example, a board President “mismanaged” $100,000 of association funds. Crime insurance would be the place you’d need to look for reimbursement of those funds to your association. Otherwise you’d have to recover the money through an assessment, personal reimbursement, etc. One important recommendation I give our clients is to NEVER… I repeat NEVER… lower your crime insurance limit. I know funds can change year to year and the desire to save money today can lead some associations to lowering this limit. DON’T! It can take years for these types of losses to become realized and lowering your limit of insurance can negatively affect your ability to recover the full amount you are owed.

Workers  Compensation is sometimes debated in the association realm as a needed coverage for a few reasons. We feel that it extremely important for all associations to carry this coverage. And we have the experience to back it up! One of our association clients had a non-board member volunteer who was doing approved work for the association and needed to use a ladder. In performing this work, the ladder slipped on a piece of moss and the volunteer fell, injuring his back upon impact. The associations Workers Compensation insurance covered the volunteers medical bills. Also, had this claim been more severe it would have covered their lost wages, pain and suffering, etc.

Associations also need to be concerned with who they hire to perform services for their association. One of our clients hired a pressure cleaning company to clean their roofs and buildings. This company’s usual staff was otherwise occupied, so they decided to hire a day laborer, who was not covered under their insurance. A few days after completing the work, this day laborer claimed he fell off the roof causing him to become injured. Since the association had no proof this did or did not happen, they were responsible for paying a percentage of the injured day laborers medical bills.

As you can see, there is a lot to think about when it comes to properly insuring your association. This is why having a team of consultants with decades of association specific experience is of paramount importance to the prosperity of your association. Let us help you find the necessary solutions. You can do so by:

  1. Signing up for our upcoming webinar
  2. Scheduling an appointment with one of our consultant
  3. Engaging with us on this blog, Facebook and LinkedIn

We hope to connect with you soon!

Looking for more content like this? Click here to sign up for our upcoming webinar! Sign up here

Written by Robbie Korth

If you have any questions, please feel free to contact Robbie Korth at rkorth@parkassociates.com

Posted 12:00 PM

Tags: homeowners association insurance responsibilities
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020

  • homeowners association insurance responsibilities(2)
  • building ordinance & law coverage insurance association(2)
  • personal property covered in storage unit(1)
  • what to do in a claim; inventory(1)
  • save car insurance(1)
  • homeowners(1)
  • business income property insurance(1)
  • homeowners water monitoring system insurance discount(1)
  • homeowners insurance not covered; homeowners exclusions(1)
  • value offered by an insurance agency(1)
  • proper insurance coverage(1)
  • personal property – replacement cost vs actual cash value(1)
  • business contract review by insurance consultant attorney and accountant i(1)
  • property insurance deductibles florida(1)
  • property owners insurance coverage needed building ordinance or law(1)
  • property insurance deductibles(1)
  • why buy flood insurance(1)
  • blanket additional insured and contracts liability coverage(1)
  • evaluate home insurance inventory belonging in new year(1)
  • epli insurance(1)
  • fema(1)
  • insurance cost coverage 2021(1)
  • association crime insurance(1)
  • solutions ot reduce insurance costs(1)
  • professional(1)
  • auto insurance stacked and non-stacked coverage(1)
  • environmental impairment liability insurance pollution(1)
  • how to calculate business income property insurance(1)
  • insurance consultant(1)
  • building ordinance & law coverage insurance commercial property(1)
  • extortion ransomware association cyber liability insurance(1)
  • florida association employee background criminal check mita's law(1)
  • insurance disclosure information risk exposures(1)
  • homeowners association insurance responsibilities series of three blogs(1)
  • association insurance high premium(1)
  • legislative updates to fl property market(1)
  • condo insurance home property liability(1)
  • property insurance deductible florida(1)
  • crime coverage(1)
  • florida ordinance and law coverage insurance building coverage(1)

View Mobile Version
Park & Associates
Quick Links
Home Our Products Customer Service Make A Payment Report a Claim
About Us Refer A Friend Our Carriers Blog Contact Us
Location
5255 N Federal Hwy.
Suite 200
Boca Raton, Fl 33487

Phone: (561) 994-0880
Fax: (561) 994-1740
Email Us

   FAIA
Facebook TwitterInstagram
Licensed In The Following States: Florida
Please Read Our Privacy Policy
Copyright © 2022 Park & Associates, Inc.
All Rights Reserved.


Powered by Insurance Website Builder