“When the potentially liable parties are mutual beneficiaries and users/occupiers of the same location, the need for each party to be properly insured is of great importance.  Residential condominium associations and individual unit owners are prime examples of this need to close all gaps in liability protection.”

In an interesting article on MyNewMarkets.com, Christopher J. Boggs discusses many of the legal liability issues for condominium associations and unit owners.  In the article, he explains that “Legal Liability is liability imposed by law, as opposed to liability arising from an agreement or contract on any person or entity responsible for the financial injury or damage suffered by another person, group, or entity.  Legal obligations, or legal liability, can arise from intentional acts, unintentional acts, or contracts.”

Chris further discusses that when seeking liability coverage, agents should take the following key points into consideration:

• Does the association require unit owners to carry relatively high limits of liability coverage?
• How great is the difference between the association’s and unit owner’s liability limits?
• Does the unit owner carry additional loss assessment coverage?  What version of the endorsement is being used?
• How does the state in which the association is located apply the concept of joint and several liability?

Needless to say Property Managers of these Community Associations must be aware of these issues as well.

Click here to read the entire article by Christopher J. Boggs.

And keep in mind, New Empire Group, LTD. offers coverage for Property Managers, Community Associations and Apartment Building Owners!  So be sure to check us out for all of your Commercial Umbrella needs!

 

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