Introduction to Insurance

– By Brit Weimer

Liability insurance covers lawsuits against insureds. Most liability insurance for community associations is found in either Directors and Officers (“D&O”) policies or Commercial General Liability (“CGL”) policies.

Community associations are increasingly feeling the pinch on insurance, facing higher premiums and even policy cancellations when too many claims are submitted. Boards frequently look to their managers to provide guidance in whether policies might cover a particular lawsuit.

However, even the most experienced community managers frequently struggle to analyze whether particular claims will likely be covered by D&O or CGL policies.

Fortunately, the core principles underlying D&O and CGL insurance are straightforward. As will be discussed in this series, the policies are largely complimentary, making it possible in many cases to quickly analyze particular coverage issues, in consultation with an insurance attorney and other insurance professionals.

We will start with a series on common D&O questions for community associations. Here is a list of the topics we will be covering over the coming weeks:

•  Do D&O policies cover claims for property damage?

•  Do D&O policies cover claims for bodily injury?

•  Do D&O policies cover claims for restitution?

•  Do D&O policies cover claims for fines and penalties?

•  Do D&O policies cover claims for discrimination?

•  Do D&O policies cover claims for intentional acts?

•  Do D&O policies cover claims for directors acting for personal purposes?

•  Do D&O policies cover claims not disclosed in the renewal application?

•  Do D&O policies cover claims that are not in litigation?

•  Do D&O policies cover claims made outside the policy period?

•  Do D&O policies cover claims reported outside the policy period?

•  Do D&O policies cover claims between directors and officers?

•  Do D&O policies cover claims for contractual liability?

•  Do D&O policies cover claims for dishonesty?

•  Do D&O policies cover claims for professional liability?

•  Do D&O policies cover wage and hour claims?

This information should be viewed as informational only and not direct legal advice. If you have an issue with a specific matter, the experienced lawyers at Moeller Graf are available to assist.