Directors & Officers Liability
It’s important for insurance agents and brokers to have a clear understanding of the type of challenges community associations and their board members face. Leading community association insurance specialists KDIS can help educate you and your clients on their risks as well as review how our D&O insurance is designed to respond in the event of a loss.
Crime Insurance Policy
Eighty percent (80%) of workplace crime occurs at the hands of employees – trusted individuals who commit crimes and cost businesses and organizations hundreds of thousands of dollars. In fact, organizations lose an estimated 7% of their revenues each year through fraud, according to the Association of Certified Fraud Examiners, and a fraud incident can go on for one or two years before being noticed.Community associations are not immune from these types of losses and, without the proper insurance coverage, are unprepared to deal with the financial setback that results from theft and other related crimes. Kevin Davis Insurance Services (KDIS) provides important Crime insurance protection to community association boards and their property managers to guard against risks involving Cyber-crime, embezzlement, check forgery, and theft.
In securing an insurance package to protect a community association and its board, it’s essential that Commercial Umbrella Liability insurance coverage be included to cover catastrophic situations. Umbrella coverage provides an association with liability coverage over and above the primary, underlying policies (General Liability, Directors and Officers, Auto, etc.), and is an important part of the community association insurance puzzle due to our litigious society. For example, if a condo association has a $5,000,000 loss and $1 million liability limit on its General Liability and Directors and Officers Liability insurance and a $5 million liability limit under its Umbrella policy, both policies will cover the first $1 million of a claim and the Umbrella the additional $4 million. Without an Umbrella policy, the association would have to specially assess the owners to cover legal fees or judgments that exceed policy limits in the event of a significant loss.
Cyber Risk Insurance
Cyber or data breaches have become increasingly commonplace today, a risk that wreaks havoc for businesses and organizations throughout every sector including the community association sector. In addition, hackers are becoming more sophisticated with the cost of cyber threats escalating, requiring robust security measures and the strength of responsive insurance program. As leading insurance specialists for condo associations, homeowners associations, co-ops, PUDs, commercial condos and resort and condo hotels, Kevin Davis Insurance Services (KDIS) offers Cyber Liability insurance as part of our end-to-end insurance solution for clients.
Errors & Omissions
Community association managers face a number of professional liability exposures as a result of the management services they provide. To have proper protection, Errors & Omissions (E&O) coverage should be provided to guard against allegations of a wrongful act (negligence, error) that causes a claimant financial harm. Unfortunately, many association property managers believe that the hold harmless and indemnity provisions in their management agreement protect them from any liability, or that the community association’s D&O policy will provide protection. But in both cases this isn’t necessarily the case.