Community groups such as co-ops and homeowners’ associations should be insured just like regular commercial businesses. There are various policies available from agencies which offer Community Association Insurance.
Protecting Directors and Officers
The directors of your community group put themselves at risk whenever they take decisions on behalf of the group. Insurance for your directors can protect them against claims such as breach of contract, non-employment discrimination, fiduciary duty, employment practices liability, and wrongful termination. Policies such as these may cover both monetary and non-monetary suits, and may extend to cover trustees, employees, committee members, and volunteers who are part of the association.
Protect Against Internal Crime
Fraud affects most businesses at some point, and 80% of workplace crimes is committed by employees. Community associations can also fall prey to internal criminal activity, and it is essential to protect the organization against these claims. Community association insurance policies which cover crime and fraud many include protections against embezzlement, forgery, cyber-crime, and theft.
Insurance for Cyber Risk
Cyber theft and hacking have increasingly become risks in today’s technological world. Such crimes may affect community organizations in several different ways, including as simply as the loss or theft of a board member’s laptop or smart phone. External hacking can also lead to loss of valuable information about the organization, the employees, or the members. Cyber risk insurance policies can help cover some of these losses.
When shopping for insurance for your community group, be sure to choose a well-rated agency which offers competitive prices for the policies you need.