Chances are you like to protect your family and property. You want to be certain that you’re covered when unexpected circumstances occur. So, why wouldn’t you do the same for your HOA?
HOA insurance can seem confusing and intimidating, but with our experts here at Blue Lime Insurance Group, you can find the best insurance for your HOA with comfort and ease. Between the requirements set forth in your governing documents and the current needs of your community, it’s vital to obtain the right amount of coverage for your HOA, while having the confidence that you’re protected.
Below we’ll discuss the basic types of HOA insurance and their significance.
Workers’ Compensation Insurance with Volunteer Endorsement
While some HOAs may think worker’s compensation doesn’t apply to them, Community Association Insurance Solutions (CAIS) asserts that an “‘If-Any’ Workers’ Compensation Policy that includes a Voluntary Compensation Endorsement” will provide an HOA with coverage for medical bills from HOA-related injuries to HOA board members, committee members, and volunteers. CAIS insists that every HOA should obtain this coverage regardless if they have employees currently. It’s important to obtain this affordable and precautionary coverage that can protect you in the future, and we at Blue Lime can provide you this policy.
Commercial Property Insurance
According to the International Risk Management Institute (IRMI), this insurance covers damage or loss to HOA-owned buildings and their contents caused by covered risks, which could include fire. The HOA will be protected from costs associated with only the perils named in the policy. Contact your insurance provider to determine which risks your policy covers to see what additional coverage you may need.
This insurance provides coverage for damage to your HOA’s property caused by flood, which is beneficial to regions often affected by flooding. IRMI says that the provided coverage usually “is subject to a per occurrence sublimit, an annual aggregate limit, and a separate deductible.” Coverage may be available through the National Flood Insurance Program, but you’ll have to consult your insurance provider to see if your community is enrolled and if your HOA is eligible.
Commercial Crime Insurance
This policy, according to IRMI, protects the HOA from loss of tangible assets caused by employee dishonesty, forgery, fraud, extortion, and theft. Consult your insurance provider to confirm the specifics of your coverage.
Commercial General Liability Insurance
IRMI defines this coverage as “protecting commercial insureds from most liability exposures other than automobile and professional liability.” Essentially, this insurance covers property damage, as well as bodily, advertising, and personal injury, inflicted on other people caused by negligence on behalf of the HOA or those who work for it. This insurance is standard for businesses, including your HOA, but discuss the extent of your coverage with your insurance provider to ensure your policy meets your association’s needs and governing documents requirements.
Directors and Officers Insurance (D&O) Liability Insurance
This policy offers protection for the board of directors and its officers from legal costs from claims and lawsuits that relate to the decisions and actions they make while fulfilling their duties.
According to IRMI, this insurance covers “claims resulting from managerial decisions that have adverse financial consequences.” IRMI also states that D&O insurance has “‘shrinking limits,’” which means the that the limits of the policy are reduced by defense costs.
Financial loss is covered under this insurance while bodily injury and property damage are not. Your insurance provider can help you assess the coverage you need under this policy.
Umbrella Liability Insurance
The specifics of this policy are dependent on the underlying insurance, such as commercial general liability insurance. According to IRMI, umbrella policies “provide protection against catastrophic losses,” offering excess limits when the limits of the primary insurance are exhausted. IRMI also describes umbrella liability insurance as dropping down and covering the underlying policy when its aggregate limit becomes exhausted, even providing “protection against some claims not covered by the underlying policies, subject to the assumption by the named insured of a self-insured retention.” It’s important to discuss with your insurance provider what umbrella options are available to you and to determine the right coverage for you.
Here at Blue Lime, we want you to feel good about the policies you have for your HOA. We’re happy to help you gain the knowledge, and coverage, you need. Reach out with any questions you have, and, if you haven’t already, get a quick quote for HOA insurance today!