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Directors and Officers Liability Coverage (D&O)

Protecting the community association and board of directors requires a close look at insurance coverage and risk to prevent the coverage gaps that only become obvious after a loss or lawsuit and there is no payout.

Directors and Officers Liability Coverage (D&O): Typically covers the board of directors. Common claims include the board’s failure to adhere to the governing documents, challenges regarding power granted by the bylaws, challenges to assessments, breach of fiduciary duty, architectural variances, fair housing discrimination and the like. Choose a policy that includes indemnity coverage for the cost of defending actions against the association and specifies that the coverage limit does not include the defense costs; otherwise, legal expenses could eat up most of the coverage.