In securing an insurance package to protect a community association and its board, it’s essential that Commercial Umbrella Liability insurance coverage be included to cover catastrophic situations. Umbrella coverage provides an association with liability coverage over and above the primary, underlying policies (General Liability, Directors and Officers, Auto, etc.), and is an important part of the community association insurance puzzle due to our litigious society. For example, if a condo association has a $5,000,000 loss and $1 million liability limit on its General Liability and Directors and Officers Liability insurance and a $5 million liability limit under its Umbrella policy, both policies will cover the first $1 million of a claim and the Umbrella the additional $4 million. Without an Umbrella policy, the association would have to specially assess the owners to cover legal fees or judgments that exceed policy limits in the event of a significant loss.

There are a couple of key issues we look at when providing Umbrella insurance, including determining the proper liability limit amounts, which will depend on the community association’s individual exposures, and what is actually covered. Our policy, for instance, extends coverage for most D&O Liability policies and will also cover Employment Practices Liability (EPLI) exposures if part of the D&O policy. We can also provide coverage for high-rise associations or apartments up to thirty-five (35) stories, with higher buildings eligible by referral.