To avoid personal liability in excess of the association's insurance limits, boards must maintain at least minimum levels of
D&O Insurance as provided for in
Civil Code §1365.7(a):
The association maintained and had in effect at the time the act or
omission occurred and at the time a claim is made one or more policies of insurance which shall include coverage for (A) general liability of the association and (B) individual liability of officers and directors of the association for negligent acts or omissions in that capacity; provided, that both types of coverage are in the following minimum amount:
(A) At least five hundred thousand dollars ($500,000) if the common interest development consists of 100 or fewer separate interests.
(B) At least one million dollars ($1,000,000) if the common interest development consists of more than 100 separate interests.
Additional insurance coverage can be added through
umbrella policies at very reasonable costs.
Limits on Protection. Protections against personal liability are limited as follows: