Owning a condo holds many conveniences that can lure potential buyers. One of the biggest is that condominiums are usually managed by someone else, freeing the buyer of a large amount of responsibility. Condo managers often take on the maintenance and safety aspects for the building, and this can lead to serious legal risk. There are many insurance coverage options available, but some could be more useful than others. If you manage a condominium as a condo association, directors and officers liability coverage could be an important addition to your business practices.
This type of liability insurance is useful in protecting the members of a condo association in case of a lawsuit. There are many instances when this would be needed, like in cases of injury or contract disputes. This type of insurance can cover damages and defense fees, but the best way to decide the terms of your policy is usually by consulting an insurance professional. An insurance service should be able to assess the risks that are unique to your property and help you decide on policy limits. There are also many other types of coverage you may want to look into that can help protect your condo association. Directors and officers liability coverage is a great start in building the right policy for you.