C.V. from Connecticut writes:
Dear Mister Condo,
Can board members be sued along with the management company? Should board members carry extra insurance other than the standard policy already in force by association? Thank You!
Mister Condo replies:
C.V., that is a great question! I am not an attorney, so please accept my reply as friendly advice. You may wish to pose the same question to your association attorney for a proper legal answer. In today’s litigious society it is quite possible for Board Members as well as the Property Management company and even the Association as a whole to be sued. The association typically holds insurance policies that cover them for a wide range of possible lawsuits. Directors and Officers (D&O) is one of those policies and it covers Board Members for most typical lawsuits they might face in the performance of their duties. For most Board Members, that is enough coverage for peace of mind while serving as a volunteer member of Board of Directors. However, there have been cases where Board Members have made exceptionally poor decisions that can lead to criminal and/or personal lawsuits that are outside the scope of this coverage. I am not sure if any additional insurance coverage would have helped them but it may be worth a conversation with your personal agent, especially if you are quite well off and concerned that a personal lawsuit would be a burden worth insuring against. I have personally served on Boards for most of my adult condo life and I have never sought additional coverage. Then again, I have never been sued performing my duties as a Board Member and I can’t imagine any of my actions as a Board Member not being covered by the association’s D & O policy. That being said, I wouldn’t consider serving on a Board where the D & O policy wasn’t in place and kept current. All the best!