Complete Protection Isn't an
Option – It's an Obligation
It's easy to treat the process of creating a
comprehensive insurance plan as just another to-do list
task. But for board members, it's a crucial undertaking
for fully protecting their associations for two overarching
reasons: their duty of care and their duty of loyalty.
The duty of care means that board members must
perform all of their duties in good faith, in a way they
believe to be in the best interest of the association and
with the same care as an ordinarily prudent person.
Practical application of the duty of care includes
knowing the scope of your authority, carefully reviewing
materials presented to you for a decision and using your
best judgement. The duty of loyalty means that board
members won't use their position to take advantage of
the association or anyone else. In practice, it looks like
setting aside your personal interests, keeping board
business confidential and avoiding conflicts of interest.
Choosing the right types of coverage is a prudent act
that puts the community's interests above your own,
which makes it a pivotal part of fulfilling these duties to
the best of your ability. Take the following four steps in
order to ensure comprehensive insurance coverage for
your community and achieve complete peace of mind
for yourself in the process.
4 Steps to Ensure Comprehensive Community Insurance Coverage
