Are All D&O Policies the Same?
Not long ago a director of a condominium association contacted me in regard to D&O (Directors & Officers) Insurance. He was in the process of obtaining D&O Insurance and wanted to know if all D&O Policies were generally the same. My answer to that question was a resounding no.
D&O policies are not all the same and it would behoove directors to check whether or not their policy protects the following types of issues which are not normally covered: 1) protection for committee members and the property manager, 2) non-monetary claims such as claims for injunctive relief, 3) third-party breach of contract claims (i.e. the landscaping contractor suing a board member), and 4) defense for personal injury fraud or dishonesty lawsuits.
Board members are best advised to consult with an experienced condominium attorney as well as a condominium insurance consultant who has extensive experience in dealing with condominium and/or homeowner association insurance issues.