Don’t Trust Name Alone
Many people have been trained to trust certain big names in the business of insurance, or have found that a certain company has served them well in other areas over the years. However, when it comes to D&O coverage, big names in insurance don’t always deliver. Oftentimes, D&O can be one of the weakest branches of an otherwise strong company.
It is, therefore, important to research beyond the name into what they actually offer and whether the coverage will be adequate for the individual situation of the association. Just like with your health insurance, you really get what you pay for if you go with a D&O insurance for HOA provider with a great track record.
Pay Your Premiums
it is prudent to steer clear of policies that seem a little too good to be true. For an association board, anything with less than a $700 annual premium is likely to have gaping holes in the coverage, as a general rule. It’s always a good idea to check with your association attorney and insurance agent on the D&O insurance for HOA policies that will best suit your community association.
Buy the Extras
Most D&O insurance for HOA offer extras that you can boost your coverage. These will cost you a little more per year but are worth the extra cost in the long run. These extra benefits can include coverage beyond your current limit and insurance that will cover any court costs that may occur because of a claim. Many policies may also include various other add-ons that will protect members from claims of harassment, discrimination, or failure to fulfill a contract.
Having these additions can really boost your protection for a relatively small price.