Protecting Your HOA With EO and DO Coverages

Homeowners’ associations or HOAs are made up of the people who live in the communities they serve. Neighbors often come together to choose members to run these HOAs. Board members determine budgets, review and approve requests, and other duties that expose them to claims and lawsuits. A company or nonprofit organization will usually have insurance policies to cover any operational risks. An HOA similarly needs to protect itself and its members from losses and damages that may result from their decisions or actions.

Covering Your Community

E&O or errors and omissions insurance can be used to protect an HOA from claims due to negligence or errors resulting from the HOA’s actions or anyone affiliated with the association, such as employees. Imagine damages to a resident’s property resulting from work being done by landscapers hired by the HOA. An E&O policy could cover the damage. A D&O or directors and officers policy protects individual board members from claims that result from their decisions. If an employee of the HOA was terminated and wanted to sue the board, a D&O policy can cover associated legal and administrative costs.

Getting the Coverage Needed

It is highly advised that you procure policies for errors and omissions and directors and officers insurance for HOA protection. This coverage can help bring peace of mind knowing that your community association’s interests are protected from certain exposures. Find an insurer who can help you create a tailored approach to full insurance protection.