Risk & Business Magazine JGS Insurance Risk & Business Magazine Spring 2018 | Page 29

FIRKIN INSURANCE
you may want to ask how many other
associations they insure, whether or not
they’re involved with the Community
Association Institute (CAI), and who will
be your main contact going forward. Often
the person you’ve met will “hand off” your
account once the sale has been made.
Obviously, the experience level of your
broker will make all the difference when a
loss occurs. Has the broker been involved
in a multi-unit fire? Does the broker know
how a Directors and Officers policy works?
Does the broker have solid, long-term
relationships with the principal players of
the insurance companies used to insure
your association? Your broker should be
available several times during the year
to review the plan of insurance with the
board, discuss loss control ideas, and if
there’s a claim, be available to conduct
special meetings as requested by the board.
Because association policies must be
renewed every year, prices can go up
or down depending on the insurance
market, how your association is presented
to underwriters, and your association’s
individual loss experience. Your broker
will work closely with all the insurance
companies available to make sure coverage
is excellent and competitively priced. If
other companies are interested and have
better pricing, the broker will discuss
the option of changing companies to get
the better price. This should be done very
carefully to make sure the change doesn’t
result in reductions or exclusions of coverage
you had previously!
In addition, some brokers provide loss
control services, usually at no charge.
The purpose of these services is to make
suggestions to the board about changes the
association can make in order to prevent
losses from occurring in the first place.
Procedures and practices related to hiring
contractors, along with a careful review of
the signed contracts before they’re signed,
should be discussed. Also, ways to properly
conduct board meetings and interactions
between the board and unit owners should
be reviewed in order to prevent claims
against the board.
So, yes, insurance is typically not well-
liked by most of us, but I’ve seen many
cases where it’s meant the association can
completely rebuild after a fire or where a
board member is sued and every penny of
his or her defense is paid for by insurance.
Insurance allows community associations
to exist and thrive— without it, things
could really get firkin out of hand! +
In 2001, Sean Ahern joined JGS Insurance
as a producer and through his commitment
over the years to the NJ Community
Association Institute earned his CIRMS
designation (Community Insurance and
Risk Management Specialist) in 2014. Sean
continues to enjoy developing superior
coverage options for his community
association clients, working closely with
Boards of Directors and other professionals
to meet the challenges presented every day
in the ever-changing world of community
associations.
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