Residents Association vs Residents Management Company (Directors & Officers insurance)

leafy211

Ive been trying to ascertain if Directors and Officers insurance for Residents associations would be applicable to Directors and Officers of Resident Management companies.  But so far Ive not found a definitive answer.  I can check with an insurance company next week otherwise, but would love to find out sooner if possible.

Sandtree

May be easier if you explain the situation that has lead to the question.

The obvious option is to simply go to a broker and get quotes for D&O but I am guessing you are seeing free D&O as part of a membership or such and want to know if it'd be appropriate in which case the answer is that you need to read the terms of the policy 

leafy211

Hi Sandtree
No, not looking for free D&O insurance. My question is my question, and that's it in black and white :-)

Smithcom

leafy211 said:

Ive been trying to ascertain if Directors and Officers insurance for Residents associations would be applicable to Directors and Officers of Resident Management companies.  But so far Ive not found a definitive answer.  I can check with an insurance company next week otherwise, but would love to find out sooner if possible.

  Directors & Officers Insurance is pretty important for directors/officers of Residents Associations.   Directors/Officers owe a duty of care for their work, even although normally unpaid.   A claim could be made against a director/officer following a health & safety issue, financial issue or general management of the grounds/block issue.  It's normally a pretty inexpensive insurance purchase.

rs65

leafy211 said:

Ive been trying to ascertain if Directors and Officers insurance for Residents associations would be applicable to Directors and Officers of Resident Management companies.  But so far Ive not found a definitive answer.  I can check with an insurance company next week otherwise, but would love to find out sooner if possible.

D&O is aimed at limited companies - hence the D part - and easy to get

It is possible it would be applicable.  An association would have members and committee members who could be 'Officers'.  A company will have Directors and possibly Officers

Smithcom

Directors & Officers Insurance (or actually, Management Liability, which is effectively the same thing) can also be purchased for partnerships, unincorporated associations etc.    Doesn't need to be just for companies, per se.

leafy211

so if a policy has been purchased for a resident association - ie D&O insurance for resident associations, then that would also cover D&O for a residents management company, even though it states residents associations?

Sandtree

leafy211 said:

so if a policy has been purchased for a resident association - ie D&O insurance for resident associations, then that would also cover D&O for a residents management company, even though it states residents associations?

You would need to read the terms of the policy. Most D&O insurance is going to be sold via an advisory broker so the alternative is to ask the company that sold it who'll have to deal with the consequences if they made a mistake. 

leafy211

thanks Sandtree (I was hoping to avoid that but agree it might be the only route to check for sure)