Suppose your condo association has no employees to speak of. Suppose all work is performed by contractors carrying their own liability insurance. Suppose all condo association members are volunteer. So why would you need workers compensation insurance?
Some states take a very broad view of the definition of “employer-employee” relationship under workers compensation coverage and claims. If your association has any volunteers on staff, you could be setting yourself up, in appearance, for the law to define your relationship as employer-employee. Your volunteer is instructed by your board to complete work that causes injury to the volunteer. Your general liability policy will more than likely not cover such activity because under the general liability description on your condo association insurance policy, those completing work for your association are generally not included or may be specifically excluded. Read more…
Much has been written about condo and apartment association insurance versus insurance carried by condo / apartment unit owners. The two main types of coverage offered to condo associations are:
1) Bare Walls In – policies covering all real property from the exterior framing inward, excluding fixtures or other installations within the unit.
2) All In – policies covering all fixtures, installations, or additions within the interior surfaces of the individual units.
Obviously the best one for your unit owners would be the All In condo association insurance policy, which would limit the need for owners to purchase additional coverage. Condo associations buying Bare Walls In coverage leave a bit more loss exposure for their unit owners. Most condo associations will advise unit owners on which policy is covering the premises. But what about deductibles? Read more…
Your apartment association board took bids, shopped around, and worked with a broker to come up with the most suitable association insurance package imaginable. And that’s great. But for how long is that going to hold true?
Even the most comprehensive apartment or condo association insurance package can become less so, as the association’s needs change. Today your association may have a set agreement in place, but amendments, additions, and changes to that agreement, as well as changes in the state of the property or to the grounds themselves could leave your apartment or condo association uncovered as a result of these changes. Read more…
Flickr photo credit: michel_langendijk
Forming your condo association is a system. You set up the board, the office, and you purchase general liability/property coverage and you are ready for business, right? Wrong.
What most condo association clients don’t recognize is that the general liability policy does not cover every risk.
In fact, general liability covers the bare minimum of risks that could befall a business.
So how do you know whether the condo association coverage you have is adequate? First, look at the declarations page of your policy. What kinds of coverages are listed? Note also how those coverages answer your specific needs. For instance, your general liability policy may cover damage or theft, but does it cover accident or injury caused by employee negligence? Does that policy cover wrongdoing of a board member or members that cause residents or employees monetary or physical loss? If your accounting clerk commits fraud, will it be covered? Read more…
Flickr photo credit: MBK (Marjie)
Standard Property insurance forms, unless properly endorsed, specifically exclude monetary losses that arise from the enforcement of building ordinances, building codes, or similar laws.
You may have carefully set a 100% Replacement Cost limit on your policy that is adequate to cover inflationary increases, but that “replacement” is to replace your building with “like kind and quality” of design and materials. Upon applying for a building permit to start repairs after a loss, you may be advised you’ll have to:
A. Tear down the undamaged portion of your building; and/or
B. Pay for the cost of that demolition to the undamaged portion; and/or
C. Replace the damaged portion (and the torn-down undamaged portion, if applicable) with construction that meets current codes, including (perhaps) such things as sprinkler and alarm systems, ADA-compliant entryways and facilities, earthquake- or windstorm-resistant construction features, etc.
None of the additional costs of such items are covered by standard, non-endorsed Property insurance forms – regardless of the Replacement Cost limit of insurance you purchased.
Insurance coverage for these items is available (for example, the Insurance Services Office, or “ISO” form that provides coverage is CP 04 05 “Ordinance or Law Coverage”). That form covers the above listed items, and a limit can be selected for each one, Coverage A, Coverage B, and Coverage C (sometimes coverages B and C share the same limit). Read more…
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