The ABC's of D&O Insuring Your Board's Decisions

Good afternoon—and welcome to the board. Your mission should you choose to accept it is to make decisions to better your building. The residents may not like you and, more importantly, may not like those decisions. Nevertheless, keep doing the job you’re doing. In a worst-case scenario, you will be sued. Perhaps more than once. Should anything go wrong, don’t worry; you’re protected by the board's D&O insurance. Good luck.”

On-the-Job Protection

You volunteer to be on your co-op or condo association’s board. You do your best to help make the right decisions and make your building a great place to live. Unfortunately, one of your fellow residents doesn’t like a decision you made and takes you and the rest of the board to court. They are suing for thousands of dollars—maybe even millions. Your home, life savings and other assets are at risk if you lose.

With stakes like that, it would be virtually impossible for co-op and condo boards to find volunteers if there wasn't some form of protection from lawsuits resulting from the decisions made by board members in the course of doing their job. Fortunately, that protection exists, in the form of Directors and Officers, or D&O insurance.

Some people think that it's only the board that starts the lawsuits when homeowners are late with dues, or because they broke the rules, but lawsuits are a two-way street, says Kevin M. LaCroix, Esq., executive vice president of OakBridge Insurance Services, an Ohio-based insurer with clients in New York City.

“They can be sued by members of the HOA and by third parties who provide services or goods to the association,” says LaCroix. “There’s no reason to serve on a board and face risk of potential liability without adequate coverage.”


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Directors and Officers Insurance

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Co-op and Condo Liability Insurance: How Much Is Too Much?

Protect Yourself Without Going Overboard



  • I have a good one for you. Our condo board president (who also works for our management company - conflict of interest), is an embezzler, having withdrawn a $10,000 check in secret from the rest of the board to invest in a tile business and then when the deal went awry, put the $10,000 back. She said that's not embezzlement. She and her husband started a new business and the check was to her husband as a start-up then to another business who does transactions in China. They traveled there with another person who told us of this incident. She also made decisions on her own violating the by-laws several times and has taken money from unit owners who rent part of their condo. illegally. She lets them rent and they pay her for not reporting them. Several of us have hired an attorney. We want her jailed. By the way, her name is not on the deed for her condo. Her husband's name is the only name on the deed. How's that for a story? All true and continuing.
  • If a Board of Director continues to slander a HO will D&O insurance cover them?