Professional liability insurance needed if on a management Board?

Question

I have one unit in a complex of about 70 and the property management company asked me to be a Board member. We meet every few months via video conference and primarily discuss the management’s need to increase HOA fees. (Increased energy costs, new roofs, etc)  Im wondering if I have a liability/exposure that I’m neglecting. Assuming a policy exists for such work, is there usually a need for property management Board members? What would a common coverage amount be if it’s recommended? (Cost estimate?) Thanks in advance,

Jason Bott · Answer

@John Bergstrom the condo should have a Directors and Officers (D&O) policy that covers the Personal Liability you are exposed to when you sit on a HOA board.  This coverage is typically part of the packaged policy insurance carries offer.

If they don't have it, do not serve on the board until they buy coverage.

Tiamo Wright · Answer

@John Bergstrom yes you will absolutely want to have coverage. I am on the HOA board for my community, primarily if they are going to make changes in the community I want to have a say. Our community recently voted to no longer allow short-term rentals in the community and I imagine from conversations that there may be litigation where the HOA, the board and the board members will all be named. Luckily our property management company has secured a very good policy to cover board members. Not sure of the cost, but you could ask your property management company for similar communities that they manage and if they have an estimate.