Most Associations have Directors and Officers insurance; the problem is that most people do not know exactly what is covered. There are many different forms out there and it is vital that Directors have the broadest form of coverage available. Below are some recommendations of what should be included in the policy.

The coverages in bold are the most important to insure:

• Protect directors, officers, trustees, employees, volunteers and committee members, as well as the community association with a broad definition of claim.
• Have a "duty to defend" feature that provides legal defense for allegations of wrongful acts and covers associated defense costs
• Provides claims made coverage with reporting of claims "as soon as practicable" after the end of the policy period
• Provides coverage for monetary and non-monetary claims
• Covers lawsuits and allegations involving wrongful termination, discrimination, and general breach of fiduciary duty
• Provides coverage for an independent community management company
• Has optional coverage available for the builder/developer while acting as a member of the Board

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