What happens when a resident slips on a wet lobby floor or trips over uneven pavement in a condo community? A simple fall can quickly turn into a major liability claim that tests the limits of your client’s protection.
For insurance agents, understanding how condo association liability insurance responds — and where its limits end — is key to helping boards stay financially secure.
Why Do Fall Claims Escalate Quickly?
At first, a fall might not seem serious. But once medical bills, legal defense, and settlement discussions begin, expenses can rise quickly. Condo associations often discover that a single injury may exceed their primary liability limits, especially if it involves severe or long-term injuries.
Imagine a case where a resident slips in a poorly lit stairwell and suffers a serious back injury. The claim totals $1.2 million, but the association’s general liability policy covers only $1 million. The remaining $200,000 becomes the association’s responsibility, and that can create real financial strain.
Falls are far more serious than many realize. They’re the second leading cause of unintentional injury-related death, with 46,653 fatalities reported in 2022 at homes and workplaces.
Common Fall Hazards To Watch For
The following are just a few of the red flags to warn your condo clients about:
- Poor lighting in hallways or stairwells
- Uneven pavement or cracked sidewalks
- Missing warning signs near slippery surfaces
- Missed maintenance checks or delayed repairs
There are several reasons these types of claims can get expensive. For example, aging infrastructure often has worn floors or unstable railings. In addition, unclear maintenance responsibilities between the board, property manager, and owners can complicate liability. And with medical costs and legal fees continuing to rise, even a small accident can strain an HOA’s budget.
Furthermore, shared negligence or outdated building codes can complicate the process. Something as simple as old handrails or poor lighting can expose a community to costly litigation.
How Does Excess Liability Strengthen Protection?
Excess liability insurance acts as a financial safety net once primary liability limits are exhausted. It doesn’t replace general liability or directors and officers (D&O) coverage. Instead, it adds another layer of protection.
Here’s an example. A condo board’s general liability policy covers $1 million, but a severe fall results in $5 million in damages. The excess liability policy would absorb the remaining $4 million.
This extra layer helps minimize the association’s financial exposure and may reduce the likelihood of special assessments on unit owners. In short, it’s an essential part of a comprehensive condo association liability insurance plan.
Most excess policies follow the form of the underlying coverage, meaning they use the same definitions and terms as the base policy. That consistency helps eliminate gaps and simplifies the claims process.
At Kevin Davis Insurance Services (KDIS), we offer specialized excess liability programs for community associations. These programs can follow the form of most D&O liability policies and may include employment practices liability (EPLI) if it’s part of the underlying coverage. With flexible limits up to $10 million and eligibility for high-rise associations up to 35 stories, KDIS helps agents secure scalable protection that matches their clients’ real-world needs.
Do Condo Associations Really Need Excess Liability?
Every condo community carries different liability risks. Large, high-rise properties or those with shared amenities like pools, elevators, or gyms naturally face greater exposure. But even small associations can face multimillion-dollar claims if a single accident results in serious injury.
Agents can help boards evaluate their current coverage by reviewing:
- Property size and occupancy levels
- Historical claim activity
- On-site amenities and maintenance procedures
By taking this approach, agents position themselves as trusted partners who help identify risks before they become costly claims.
KDIS supports this consultative role with customized excess liability solutions that account for community size, structure, and exposure profile. Our underwriting expertise helps agents recommend appropriate limits while keeping affordability and transparency in mind.
Is Excess Liability Coverage Worth It?
At the end of the day, condo association liability insurance is only as effective as its highest limit. While excess liability coverage doesn’t expand what’s covered, it ensures there’s enough financial protection when catastrophic losses occur.
In today’s legal climate, even one severe fall could result in a multimillion-dollar payout. Having excess liability insurance gives associations the financial capacity to manage large claims without draining reserves or relying on special assessments.
For insurance agents, recommending excess liability coverage through a trusted provider like KDIS demonstrates professionalism and foresight. It shows a commitment to protecting not only a community’s property and assets but also its financial stability.
Learn more about KDIS’s excess liability solutions for condo and community associations.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.