You Probably Have More Liability Exposure Than You Realize
Community association managers carry a lot of risks, and, contrary to popular belief, they’re not all covered by their clients’ insurance policies. If you’re counting on those policies for protection, you could be left on the hook for defense and liability costs.
“Many managers mistakenly believe they have adequately shifted all their risk to clients,” says Joel Meskin, CIRMS and managing director of community association products with Ohio-based McGowan Program Administrator, a nationwide writer of insurance programs.
Managers generally are covered under their clients’ general liability policies. “That’s a manager’s primary coverage for managing an association, as if they were an employee of the association,” says Richard Long, vice president and agent with the Miramar Beach, Fla., insurance agency Fisher Brown Bottrell. “Real estate managers are specifically covered for their activities while working for the association.”
But managers shouldn’t take too much comfort from the existence of these policies, according to Meskin. “The mistake managers make, especially in the D&O area, is that their protection is only as good as the association policy, so if the association gets a cheap policy, it affects the manager.”
To learn more about the types of additional insurance protection managers need, and why, read our new article, Are you sure you’re covered? Filling the insurance gaps for association managers.