Directors & Officers — Protection for the Volunteer Board.
HOA and condo board members make decisions their own members can — and do — sue over. D&O protects those volunteers, and the association, from claims over governance, and it's often required by the bylaws.
What D&O covers
Directors and officers liability protects the volunteer board members of an HOA or condo association — and the association itself — from claims arising out of their governance decisions. It pays defense costs and damages when a member, owner, or third party alleges the board acted wrongly.
Why boards genuinely need it
Association boards make consequential, often unpopular decisions: levying assessments, enforcing rules, approving or denying architectural requests, managing reserves and maintenance. Owners sue over all of it — claims of breach of fiduciary duty, unfair enforcement, discrimination, mismanagement, and failure to maintain. Without D&O, a volunteer board member's personal assets can be exposed to defending those claims, which is both unfair and a serious deterrent to anyone serving.
| Breach of fiduciary duty | Allegations the board mismanaged the association's affairs. |
| Unfair enforcement | Selective or improper application of rules and covenants. |
| Discrimination | Fair-housing and related claims in board decisions. |
| Mismanagement | Reserve, maintenance, and financial-decision disputes. |
D&O vs. the master policy
D&O is distinct from the association's master property and general liability. The master GL covers bodily injury and property damage in the common areas; D&O covers the decisions the board makes. An association needs both — and the bylaws often require D&O specifically. We place them together so nothing falls between them.
What it typically costs
- Rated on the number of units, the association's financials, and claims history
- Often a modest line relative to the protection it provides the board
- Bundled into a complete association program in most placements
FAQ
Isn't the board covered by the association's liability policy?
Not for governance decisions. The master GL covers bodily injury and property damage in common areas. D&O is the separate line that covers the board's decisions — the thing members actually sue over.
Our bylaws require D&O. Why?
Because volunteer board members are personally exposed to decision-related claims, and the requirement protects both them and the association. It's also a practical necessity for recruiting people willing to serve.
What kinds of claims does D&O handle?
Breach of fiduciary duty, unfair or selective rule enforcement, discrimination and fair-housing claims, and financial mismanagement allegations — the disputes that arise from running the association.
Protect the people who run your association.
We place D&O alongside the master property and liability program so the board — and the association — are covered for decisions and for the common areas alike.