Condominium Association Insurance

---

Condominium association insurance is not as cut and dry as other forms of commercial insurance. A Condominium Association is a very unique legal entity. As such it is faced with a myriad of special exposures to loss that must be addressed by a properly designed insurance program. When reviewing any proposals for the program renewal, it should be confirmed that, at the very least, it includes the following insurance policies.

Commercial Package

This policy typically includes General Liability and Property. The General Liability Coverage Form protects the Condominium Association and its individual members against allegations of Bodily Injury, Personal Injury and/or Property Damage sustained by some third party, and arising out of the Condominium, itself, or the actions of the members of the Condominium Association. The Property Coverage Form provides protection against the financial consequences of direct damage to the commonly owned property, such as the condominium building, any ancillary buildings or structures and any personal property owned by the Association.

Directors and Officers Liability

This coverage protects the Directors and Officers from claims alleging some wrongful act or omission while acting in their individual or collective capacity on behalf of the Condominium Association.

Employee Dishonesty

This policy is designed to protect the Condominium Association for loss of money, securities or other property as a result of dishonest acts of Directors, Officers, Committee Members, Employees of the Property Management Company and/or an employee of the Condominium Association. If the Condominium Association utilizes the service of a Property Management Company to collect dues and assessments, it is imperative that the Property Management Company carries its own Employee Dishonesty policy with sufficient limits.

Without any one of these three policies, a Condominium Association is severely exposed to a loss that would more than likely result in additional member assessments. Depending on several other factors, the program may also need to include Workers Compensation and/or Flood Insurance. Additionally, an Umbrella policy is always recommended to increase the limits of liability provided by the General Liability and Directors & Officers Liability policies.

Contact me today to discuss your condominium association insurance program.

John Caffrey
(678) 715-9919
JCaffrey@SouthernStatesInsurance.com