LESSON LEARNED
A Penny Saved Is A …
Lesson Learned
Most people are aware of the
common idiom “ A penny saved is a penny earned .” The takeaway is that money should be saved and not wasted . This is valuable advice that should not be overlooked , especially when dealing with the finances of a community association . And this notion of a penny saved can be applied to every financial decision that has to be made , including decisions dealing with insurance . The problem arises when pennies saved on premiums at the expense of pivotal coverages lead to greater exposure facing your insured .
Take , for instance , directors and officers ( D & O ) liability coverage . In the realm of community association business , it ’ s well established that volunteer officers and board members can be held liable for the decisions they make ( or don ’ t make ) on behalf of the association they serve . Let ’ s take a moment to break that down . You can be held liable should you choose to enforce a rule or regulation . You can also be held liable should you choose not to enforce that very same rule or regulation . Let that sink in for a moment . And in the COVID environment , it ’ s fair to suggest that all directors and officers continue to struggle not only with the
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