Do HOA board members really need Directors & Officers (D&O) insurance?

Yes, D&O is one of the coverages most associations carry, and the reason is structural. Board members are volunteers making binding decisions for all owners, and claims can be brought against them personally over matters such as selective enforcement of the rules, financial mismanagement, discrimination, failure to maintain common areas, improper denial of an architectural request, or breach of fiduciary duty. General liability generally does not respond to those claims. It is built for bodily injury, property damage, and personal and advertising injury arising from the premises and operations, rather than for decisions the board makes. D&O is the coverage written for management and governance decisions. Two things are worth understanding. Forms vary in who counts as an insured, so whether volunteers, committee members, and employees are covered is a policy by policy question. And employment-related claims are sometimes placed in a separate employment practices coverage rather than inside D&O. If you want to know what your association’s form actually covers, send it to us and we will read it with you.