Liability Insurance for Homeowners Associations

Your homeowners association might be at risk for injury or accident on common property managed by the HOA. HOA liability insurance policies are insurance programs for HOA organizations which can protect them from losses or financial damages due to claims or lawsuits after an accident or injury on an HOA-managed common property. For example, if a resident is injured in the community gym, the homeowners association liability insurance can cover the cost of their claim or of defense and legal damages resulting from a lawsuit due to that injury. Many HOA liability policies can cover defense costs even if the HOA is not found liable for the injury or accident.

There are several specialized types of liability insurance which may be a worthwhile investment for a homeowners association. Directors and officers liability insurance can insure the HOA directors and officers from lawsuits and legal damages resulting from financial disagreements, breach of contract, wrongful foreclosure and other management risks. A newer type of liability insurance, cyber liability insurance, may be needed by a homeowners association to protect the private and financial information of the association and its residents. However, not all insurance companies can provide D&O insurance or cyber liability insurance. A licensed and qualified HOA insurance professional can help your homeowners association find the best liability insurance programs for HOA management organizations.