No board can prevent every accident, lawsuit, water or property damage event. However, there are practical steps that boards and managers can take to put themselves in the best possible position before such a claim occurs. The goal isn't perfection, but rather preparation.

Most boards focus heavily on purchasing insurance, but having a policy in place is only one piece of the puzzle. When a claim occurs, the difference between a smooth resolution and a frustrating experience often comes down to the steps taken beforehand. While it’s impossible to anticipate every scenario, there are several ways to better position your community before an incident occurs.

Review Your Insurance Program Regularly. Insurance needs evolve over time. Property values increase, building systems age, regulations change, and new exposures emerge. An annual review with your insurance professional can help identify potential gaps in your coverage, confirm that limits remain adequate, and ensure that coverages align with the association's current operations.

Maintain Accurate Building Records. When a significant loss occurs, documentation becomes invaluable. Keep records of major capital improvements, building systems, maintenance projects, contracts, and prior claims. Having that information readily available can help streamline the claims process and reduce delays.

Develop a Claims Response Plan. In the immediate aftermath of a loss, decisions often need to be made quickly. Boards and management should understand who to call, how to report claims, which emergency vendors may be needed, and who is responsible for communicating with residents. Creating a simple response plan in advance can save valuable time when it matters most.

Focus on Loss Prevention and Risk Management. While insurance provides financial protection, preventing losses from happening in the first place is always the best outcome. Routine maintenance, safety inspections, water leak detection, contractor oversight, and addressing known hazards can help reduce both the frequency and severity of claims.

Understand Your Association's Responsibilities. Many claim disputes arise because expectations are unclear. Boards should have a general understanding of the association's obligations, the role of insurance, and any governing documents that may affect loss responsibilities. When questions arise, consulting qualified professionals can help avoid misunderstandings before a claim occurs.

 While boards cannot control every circumstance, they can take steps to better position their association before a claim occurs. By reviewing insurance regularly, maintaining strong documentation, implementing sound risk management practices, and establishing a clear response plan, associations can put themselves in a stronger position before a claim ever occurs.

Samantha Tucci is an insurance consultant with Mackoul Risk Solutions. She may be reached at stucci@mackoul.com.