: Is Public Officials and Management Liability insurance the same as Director and Officers (D&O) Liability?
are similar but not the same. Both are errors and omissions policies,
i.e., they protect the insured in their decision-making. The primary difference
between the policies is who gets insured. In
the Public Officials policy, elected/appointed officials of state and
local governments are the insured. A D&O policy, on the other hand,
covers directors and officers of corporations. However, common interest
developments need broader coverage than a straight corporate D&O
. D&O policies
for community associations are designed like a management liability
policy. That is to say, they typically include coverage for errors and
omissions and fiduciary liability
. Many also include employment practices liability
with others offering coverage on endorsement. In addition, they cover
volunteers on committees and the onsite manager (if any). In other
words, they are specifically tailored to the HOA industry.
It goes without saying that boards should talk to insurance brokers
with expertise with homeowner associations. The last thing a board wants
is to have a claim denied because they bought inadequate insurance.
: Associations needing legal assistance can contact us
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