Nov 24 2025 18:48
Community Associations: Management Liability and Crime Coverage
Protecting Community Associations: Management Liability & Crime Coverage Combined
Community associations do a lot more than maintain shared spaces—they operate like small businesses, managing budgets, enforcing rules, hiring vendors, and making decisions that affect entire neighborhoods. With that responsibility comes real risk.
Board members can be sued over governance decisions. Employees or vendors may file workplace-related claims. And association funds can be vulnerable to theft, fraud, or embezzlement. That’s why Management Liability (D&O/EPLI) and Crime coverage are essential tools for protecting your board, your finances, and your association’s reputation.
Who This Coverage Is Designed For
Our Community Associations product is tailored to meet the unique risk profile of a wide range of associations, including:
- Homeowners’ Associations (HOAs)
- Condo Owners’ Associations
- Cooperative Housing Associations
- Timeshare/Interval Associations
- Condo/Hotel Associations
- Commercial/Professional Associations
- RV Associations
If your association governs property, collects dues, and makes decisions on behalf of a community, this coverage was built with you in mind.
Preferred Risk Profile
While we can consider many types of associations, this product is a best fit for communities that fall within these guidelines:
- 1,000 units or fewer
- Average unit value of $2M or less
- Five or fewer employees(excluding property management staff)
- Less than 20% of owners delinquent on dues
- Less than 30% of units owned by any one individual/entity
- No prior claims history
- Fully completed construction
These traits typically indicate stable governance, strong financial health, and overall lower exposure—allowing us to offer broader protection and more competitive terms.
Management Liability: Key Highlights
Management Liability coverage protects the people making decisions for the association, as well as the association itself. This includes Directors & Officers (D&O) protection and Employment Practices Liability (EPLI) when applicable.
Notable features include:
- Full prior acts coverage(with a pending/prior date)
- Duty to defend
- Broad “Insured” definition, including property management firms and their staff
- First- and third-party EPL coverage
- Breach of Contract defense costs
- Defense for non-monetary claims
- 80/20 softened hammer clause
- No “failure to maintain insurance” exclusion
- Punitive, exemplary, and multiple damages where insurable
- Defense for architectural review board decisions
Optional Management Liability Enhancements
Associations can tailor coverage further with options such as:
- Additional Defense Limit
- Wage & Hour Defense
- Workplace Violence Expenses
- Immigration Defense
- Reputation Expense
These add-ons help address modern exposures that are becoming more common in association environments.
Crime Coverage: Key Highlights
Even well-run associations can face financial loss from theft or fraud. Crime coverage helps safeguard association funds and ensures continuity after a loss.
Core protections include:
- Employee Theft coverage
- Optional Property Management Employee Theft coverage
- Social Engineering Fraud protection
- Loss discovered form
Additional Crime Coverages Available
Associations can also access a broad menu of protections, including:
- Premises & In Transit
- Forgery
- Computer & Funds Transfer Fraud
- Money Order & Counterfeit Currency Fraud
- Credit Card Fraud
- Client Coverage
- Personal Accounts Protection
- Telecommunication Fraud
- Expense coverage
Together, these address both traditional crime risks and today’s tech-enabled fraud exposures.
Need Property Coverage Too?
Management Liability and Crime are critical pieces of protection—but they’re often part of a bigger risk picture. If your community also needs property insurance, we offer several property coverage options designed specifically for community associations.
Need property coverage as well? Click here to explore your options and see how we can help protect your buildings, common areas, and physical assets.
Ready to Submit a Risk?
Thinking about a community association risk we should review? Before you scroll away—send it in. The more detail you and your team provide, the better we can assess fit and offer accurate terms.
