It seems as though litigation against community association boards and their property managers is becoming more frequent.  They need more than just the usual coverage these days.  EPLI (Employment Practices Liability Insurance), D&O (Directors & Officers Liability) and Cyber Liability are all a MUST when it comes to Community Associations.  You may be thinking, “My clients do everything by the book, do they really need all of these coverages?” and the answer is YES.

 

Here are a few common claims against Community Associations & Property Managers:

• Age Discrimination Claims – An older-aged custodian had several complaints against him made by members of the community association.  After reviewing the complaints, the board decided to fire the custodian.  He then sued the association for age discrimination, and the case settled out of court for $145,000.
• Fair Housing Discrimination Claims– It’s surprising how the diligent efforts of Property Managers, Owners and Boards to address seemingly minor complaints or requests often become much more serious when residents claim that they are being discriminated against. Thorough documentation of the actions taken to resolve these issues are often the key to successfully defending claims of this nature.
• Cyber Liability Claims: Property Managers can be responsible for security breaches of the personal information in the care. This can be an electronic or “Cyber” breach or a simple theft of documents containing information. Third parties and employees with access can be potential threats. Notification requirements and credit repair can be substantial. Secure networks and thorough background checks can reduce this exposure. Large fines can also be assessed for the improper disposable of personal information even when there has been no actual breach.
• Failure to Place or Failure to Maintain Insurance– An uncovered insurance loss will generally generate litigation at some level. Errors range from missing a bill to leaving locations off of schedules. Clear contracts specifying a Property Manager’s role and responsibilities are essential for successfully defending claims of this nature. Clear and documented communications with owners and boards are also essential. This is of particular concern when Property Mangers take on a new client and are integrating the new locations and properties into their system.

If your clients have the proper coverage it could mean saving hundreds of thousands of dollars in potential claims.  To learn more about the different coverage’s that New Empire Group offers (including the ones mentioned above), visit our website, www.NewEmpireGroup.com. 

Also, check us out on our Social Media Sites!

Facebook, Twitter, LinkedIn or Subscribe to our Daily Candy E-Mails!