Risks For Associations Of Apartment Owners ( AOAOs )
Many of our clients ask the question , “ What is an AOAO ?” Simply put , AOAO stands for Association of Apartment Owners .
Registration of an AOAO is important for the uninterrupted maintenance of any community association . It provides a platform for apartment owners to raise their grievances regarding any issue in the association . There are many strategic plans that the AOAO Board of Directors must devise to tend to everyone ’ s needs . Unfortunately , AOAOs also have risks which we are going to discuss below .
AOAO RISK EXPOSURES COMMERCIAL PROPERTY POLICY
A commercial policy is typically referred to as the Master Policy that covers the community association ’ s buildings from direct physical losses if it is not limited or excluded in the policy . This policy covers the most common perils , including fire damage and water damage from the sudden and accidental discharge of water from the building ’ s pipes , plumbing , fixtures , and appliances . Hurricane Coverage is typically bundled with the Property Policy .
FLOOD INSURANCE POLICY
In insurance , “ flood ” is defined as a general and temporary inundation of normally dry land areas from the overflow of inland or tidal waters or from the unusual and rapid accumulation of runoff or surface water from any source . For the high-risk or Special Flood Hazard Areas such as A and V zones , flood insurance is mandatory and is a requirement from banks and lenders that are financing a unit or home in that community association .
COMMERCIAL GENERAL LIABILITY ( CGL ) POLICY
The CGL policy provides coverage for bodily injury , personal injury , and property damage that occurs within the premises as caused by the community association ’ s operations or negligence .
COMMERCIAL AUTOMOBILE POLICY
The auto policy provides coverage for association owned , hired and non-owned , or borrowed / leased vehicles . Coverage parts include liability coverage for bodily injury or property damage and physical damage to owned vehicles under comprehensive and collision coverages .
DIRECTORS & OFFICERS ( D & O ) LIABILITY
The D & O policy covers board directors , officers , trustees , committee members , volunteers , employees , and the property management company for their actions and decisions made while governing , operating , and managing the community association .
WORKERS ’ COMPENSATION AND EMPLOYER ’ S LIABILITY
This policy is a requirement of the state ’ s Workers ’ Compensation laws . This policy pays for what a community association becomes legally obligated to pay as a result of employee injury or disease while on the job .
UMBRELLA LIABILITY POLICY
This is a liability policy that provides additional coverage limits in excess of or following the General Liability Policy ,
Automobile Liability Policy , Directors & Officers Liability Policy , and Employer ’ s Liability .
TEMPORARY DISABILITY INSURANCE ( TDI )
This policy provides partial wage replacement to eligible employees for nonwork-related injury or sickness , including pregnancy .
COMMERCIAL CRIME POLICY / FIDELITY BOND
This Policy is required by the Hawaii Revised Statutes 514B for any association with more than five dwelling units . It provides coverage for various dishonest acts by employees , property managers , and insured persons or insured entities and subsidiaries .
CYBER LIABILITY POLICY
This is for data breach coverage and liability protection arising from computer hacks , viruses , and cyber social engineering that could attack the association ’ s computers and compromise association and unit-owners ’ private information .
PUT YOUR AOAO IN TOUCH WITH ATLAS
As a condominium owner , your AOAO is the primary source of insurance . Because lack of coverage can affect you financially in the event of flooding , fire outbreaks , injuries on the premises , and other liability damages , it ’ s important to help your AOAO purchase insurance policies that are right for you and your neighbors . Atlas Insurance can help ! Have your AOAO director or officer book an appointment with us today to get started . +
BY : SEAN SATTERFIELD BUSINESS DEVELOPMENT DIRECTOR , ATLAS INSURANCE AGENCY
As the Business Development Director in the Client Consulting Unit , Sean brings decades of financial industry expertise to the Atlas team , having previously held senior management roles with three Fortune 100 financial institutions . He leads the business development team and collaborates with various agency units to develop long-term growth strategies for Property & Casualty , Benefit Consulting , AOAO and Risk Control & amp ; Claims Management .
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