Community associations experience frequent board member turnover, with terms ranging from months to years. This creates ongoing liability exposure for former directors and officers who may face claims long after their service has ended.

All Access Insurance has partnered with United States Liability Insurance Group (USLI) to offer a community association Directors and Officers liability coverage plan that features a unique Lifetime Occurrence Reporting Provision. This provision automatically extends protection to former board members if successors cancel or non-renew their coverage.

Key Features of the Lifetime Occurrence Reporting Provision

This unique provision offers several important benefits for community association board members:

• Lifetime Occurrence Reporting Provision – An uncommon feature in D&O policies that provides unlimited extension of protection from claims if the new board elects to cancel or non-renew their coverage.
• No additional premium required – This coverage is automatically included at no extra cost.
• Applies to all individual insureds – Every board member and officer is covered, not just select individuals.
• Peace of mind for former board members – Former directors and officers can rest easy knowing they are protected even after leaving the board.

Real-World Example

Consider this scenario: A former board president signed a three-year contract with a handyman on behalf of the association during her tenure. After she left the board, the new board decided to terminate the handyman’s services before the contract expired. The handyman subsequently sued the association and the former board president personally for breach of contract.

Because the former president had the USLI policy in place during her time on the board, her defense costs were fully covered under the Lifetime Occurrence Reporting Provision – even though the new board had failed to renew the insurance policy. Without this provision, she would have been personally responsible for her own legal defense costs.

Get a Quote

If you are involved in a community association and want to ensure that your board members are properly protected, contact All Access Insurance today. Our team can help you find the right Directors and Officers liability coverage for your association.

For more information or to request a quote, email us or call (303) 932-1700.

Author: Rick Cline