3. Match Insurance Products to
Your Areas of Risk
Once you complete the risk review, your team of professionals should help you match
each potential risk to insurance products designed to manage those risks in the event
of a loss. The chart below is not exhaustive, but will show you how the previously
discussed areas of risk could be mitigated with the right types of coverage.
HOW TO MATCH RISKS TO INSURANCE PRODUCTS
PROPERTY COVERAGE: Usually covers common
area structures for damage due to fire, vandalism and
other defined perils. Specialty coverage is required
for damage from floods, earthquakes and hurricanes.
GENERAL LIABILITY COVERAGE: Protects the
association in the event a third party sues on the
basis of a claim such as property damage, bodily
injury, personal injury or advertising injury.
DIRECTORS AND OFFICERS COVERAGE: Protects
board members and possibly people acting as
extensions of the board for legal costs incurred as a
result of being sued.
CRIME AND FIDELITY COVERAGE: Protects the
community's money and investments against events
unrelated to the management company handling
the association's accounting and finances. The
management company carries their own crime and
fidelity insurance for events related to their systems
and processes.
WORKERS' COMPENSATION AND EMPLOYER'S
LIABILITY COVERAGE: Workers' compensation
coverage protects the association from a lapse in
a contractor's insurance or a suit from an injured
employee of the association or a contractor.
Employer's liability coverage protects employers
from claims about discrimination, harassment or
working conditions.
RISK TYPE
PROPERTY
LIABILITY
INCOME
PERSONNEL
APPROPRIATE INSURANCE
4 Steps to Ensure Comprehensive Community Insurance Coverage
