Homeowner association (HOA) board members play a crucial role in the management and maintenance of a community. They make important decisions that affect the community as a whole and are responsible for ensuring that the HOA operates in accordance with its bylaws and governing documents. However, with this responsibility comes the potential for liability.

One way that HOA board members can protect themselves from personal financial loss is by carrying directors and officers (D&O) coverage. D&O insurance is a form of liability insurance that protects the personal assets of individual board members in the event that they are sued for wrongful acts committed in their official capacity as board members.

There are several reasons why HOA board members should carry D&O coverage. First, HOA board members are often volunteers who may not have the financial resources to cover the costs of a lawsuit. D&O coverage can provide the necessary financial protection in the event of a lawsuit, allowing board members to focus on their responsibilities to the community.

Second, HOA board members can be held liable for a wide range of actions, including decisions made at board meetings, actions taken to enforce community rules and regulations, and failure to maintain common areas. D&O coverage can provide protection against these types of claims.

Third, D&O coverage can also provide protection for HOA board members against claims of discrimination, harassment, and breach of fiduciary duty. These types of claims can be particularly costly, and D&O coverage can help to mitigate the financial impact on board members.

HOA board members play a crucial role in the management of a community and carry a great responsibility. D&O coverage can provide peace of mind for HOA board members by protecting them from personal financial loss in case of any wrongful act in their capacity as board members. It is important for HOA board members to consider carrying D&O coverage as a way to protect themselves, their personal assets, and their ability to serve in their volunteer role effectively.