Condo Association Insurance

Condo Association Insurance can be provided on our Business Owner Policy (BOP) coverage form and is designed to provide comprehensive insurance for condominium association insurance requirements.  We know that Condo Association Insurance is likely to be an excellent policy choice for your needs.  Condo Associations need coverage for the variety of property and liability exposures inherent in ownership and management of property but the Condo Association Insurance needs are not the same as those of a homeowner. Homeowners, for example, are responsible to insure all of their property. In Condo Association Insurance, in most cases there is a point where the unit owner is responsible for the insurance on their property. Every Master Agreement is different so knowing what the agreement says in vital in guiding your unit owners. In a nutshell, the collective responsibility of the Condo Association Insurance is different than the needs of unit owners and the bylaws govern what the Association is responsible to do. While there are some generalities in common from one development to another, in each cases we may need to more carefully consider the business operations, the Master Agreement and the bylaws to assure that coverage is adequate and appropriate for the risk. Our Condo Association Insurance Business Owner Insurance programs is a great option for most Associations when all the important factors are well understood and identified.

Condo Association Insurance under our BOP policy is designed for most residential and office condominium operations.  The Business Owner Policy will typically include the following coverage and options when selected. Basic general liability is included automatically:

Condo Association Insurance – Liability

• Bodily Injury and Property Damage, Premises Liability
• Personal Injury and Advertising Liability Coverage
• Employment Practices Liability Insurance
• Fellow Employee Coverage
• Host Liquor Liability
• Non-owned Watercraft
• Hired and Non-Owned Auto Liability
• Products and Completed Operations Liability
• Employee Benefits Liability
• Ohio Stop Gap Liability Insurance
• Cyber Insurance
• Directors and Officers (D&O) Liability

Liability insurance protects against the tort of negligence in the Condo Association Insurance policy.  The tort of negligence is a breach of duty that is derived from common law principles that have evolved through decades and even centuries of recorded decisions about our relationships with one another including Condo Association Insurance clients.  A duty is an obligation we owe to someone else.  In essence, we owe each other the duty to protect them from the consequences of our actions and when someone is hurt or suffers harm to either body, property, or reputation, in our culture we boil down our grievances to a monetary settlement in most cases.  In the case of the liability coverage provided in our Condo Association Insurance policy, we will pay for the benefit of a legal defense against the claims of injury or damage and we will also pay the amounts that become due to another because a finding of your negligence has occurred through legal proceedings or an agreement accomplished through the negotiations of your insurance carrier and the other people involved in the claim.  This includes bodily injury and property damage as a result of events on the premises, through acts on and away from the work facilities, injuries caused by products, advertising injury, personal injuries other than bodily injury, hired and non-owned auto liability, and injury or damage caused due to computer intrusion and compromise when chosen.

Associations are governed by a Board of Directors and one area that every Condominium Association Insurance policy should consider and include is Condominium Directors and Officers (D&O) Liability insurance that is a necessary and needed extension of liability to protect the Board from claims of negligence, error, omission, and misuse of discretion. This coverage is typically provided on a Claims Made basis and this form of liability differs from the occurrence foundation of the provided general liability coverage.

Property for Condo Associations

• Buildings including multiple locations
• Business Personal Property used to service the property
• Building Limit Automatic Increase at the Time of Loss
• Valuable Papers and Records
• Accounts Receivable Coverage
• Computer Coverage and Cyber Crime
• Outdoor Signs—Attached and Detached
• Building Ordinance or Law Coverage
• Off-Premises Coverage for Business Personal Property, including Property in Transit
• Earthquake Coverage (Some carriers)
• Business Income, including Extra Expense Coverage
• Coverage For Water Back-up
• Equipment Breakdown

Property insurance is required to be included when a Condo Association policy is issued.  We must include the business personal property, stock and fixtures because the Condo Association Insurance policy is a package policy that requires both liability and property coverage be included.  The reason the BOP policy is cost effective is the large package credits that are built into the premium charges.  The business owner policy provides a lot of coverage in a tidy package and it is flexible enough to handle several locations and variety of situations for building, business personal property, computer and cyber crime needs, signs, coverage on or off premises, loss of business income, and break down of critical building mechanical systems that may alter your ability to operate. Larger Condo Associations may be equally served by our commercial package policy when property values exceed the thresholds built into our Condo Association Insurance business owner policy package.

Inland Marine and Special Property

(See IM Section for more Details)

Mobile equipment and property that leaves the building is best covered with an inland marine endorsement that is designed for equipment that may float to where you actually do your work, like for example, laptop computers that are taken to a local or business event.  Certain equipment that is mobile in nature and leaves the business premises will find the broad coverage of the inland marine policy endorsement is best method of insurance for this type of property.

Umbrella Liability

Condo Association Insurance often includes an Umbrella liability policy as an additional limit of liability coverage. An Umbrella policy protects for damages that exceed primary policies and sometimes losses that were not covered in the primary policies but were not excluded by the language of the umbrella policy.  Most carriers offering an umbrella policy to cover over underlying policies they also write.  It is good to know what is and isn’t covered by the Umbrella so make sure to ask.

Crime and Fidelity

• Employee Theft
• Crime Inside
• Crime Outside

While you are busy operating and managing Association business, your Condo Association Insurance can be on guard for the loss of money through theft, robbery or burglary, or the dishonesty of an employee. These are losses that can cripple a business and tailoring the needs for crime and fidelity coverage can be done within the Business Owner Policy for Condo Association business needs.

Business Auto

(See business Auto Section for Details)

When your Association operates Association-owned vehicles it is important to insure the vehicles with liability protection just like the premises and operations.  Moreover, use of personal autos in the conduct of the Association business also exposes the Association to non-owned liability that can become costly.  The business auto coverage is dealt with in great detail in the business auto section and Condo Association Insurance clients should also consult this section.  Follow the link to this section for additional business auto information.

Professional Advice and Agency Service

Quality coverage begins with understanding your needs and the extent of your operation.  I have 37 years of experience working with business owners and have insured hundreds of millions of dollars of condominium property through the years. Condo Association Insurance is competitive so if you’re looking to help trim expenses at your Condo check with me. When it comes to Condo Association Insurance I have considerable experience working with Association officers and management organizations including attending meetings and training coverage.  I understand the need for thorough insurance and professional service and advice.  This agency represents quality carriers that have the ability to provide the coverage your Association needs whether or not it is ultimately provided inside of our Business Owner Policy or our more flexible Commercial Package Policy (CPP) option.  Call and ask for Terry McCarthy at (513) 779-7920, 9-5 Monday – Friday most days. We’re available to meet at most any time with an appointment in advance.