Condo associations across the country are under growing scrutiny over board behavior. From questionable foreclosures and selective rule enforcement to financial mismanagement and conflicts of interest, condo board abuse of power is becoming a more frequent and costly concern. For insurance agents advising community associations, now is the time to ensure that board members have the protection they need. Directors and officers (D&O) insurance for condo associations has become a cornerstone of responsible governance risk management.
What Is Directors and Officers Coverage?
D&O insurance protects individuals serving in leadership roles within a condo association. This list includes board members, trustees, volunteers, employees, and even property managers or developers acting in an official capacity. The policy provides legal defense and financial protection when someone alleges they committed a wrongful act in the course of their duties.
Claims may involve breach of fiduciary duty, failure to follow governing documents, wrongful foreclosure, discrimination, and financial mismanagement. Even baseless allegations can result in expensive legal battles.
Kevin Davis Insurance Services (KDIS) offers D&O policies built specifically for community associations. Features include a duty-to-defend provision, broad definitions of claims, and coverage for both monetary and non-monetary relief. Where allowed by law, some policies may also cover punitive or exemplary damages. This level of coverage allows condo boards to operate with confidence, knowing real-world risks are addressed.
Real Risks Boards Face Today
Even well-meaning board members can face legal action. Common triggers for D&O claims include inconsistent rule enforcement, perceived discrimination, conflicts of interest, or misuse of association funds.
In many cases, the issue isn’t whether a decision was “right” or “wrong,” but whether the board followed the correct procedures and upheld its fiduciary duty. These gray areas can spark lawsuits, investigations, and reputational harm.
Without strong D&O insurance, associations may need to tap reserves or issue special assessments just to fund legal defense. These situations can quickly erode trust between homeowners and leadership.
Why Agents Must Recommend D&O
Insurance agents are uniquely positioned to help their clients manage board-level risks. Recommending directors and officers insurance for condo associations helps clients respond to claims while reinforcing your value as a knowledgeable advisor.
With over 77.1 million Americans now living in community associations, these challenges are not just theoretical. They’re playing out in real neighborhoods every day.
KDIS’s policy is designed for this environment. It includes coverage for board disputes, personnel matters, and even liability involving third-party vendors like community managers. It also covers builder and developer board members, which many standard D&O forms overlook.
D&O Protects Reputations and Finances
Beyond legal fees, D&O insurance safeguards reputations, prevents unnecessary special assessments, and helps maintain homeowner confidence in the board’s leadership.
KDIS’s “duty to defend” feature ensures boards receive legal representation from day one, avoiding delays that can escalate a dispute or impact decision-making. This early engagement can be critical in fast-moving or high-profile cases.
Strong Board Protection Starts With You
Allegations of condo board abuse of power are no longer rare. They’re a sign that community associations need stronger governance protections. As an insurance agent, your insight can make a measurable difference by helping your HOA clients stay ahead of the risk.
Partnering with Kevin Davis Insurance Services gives you access to one of the most comprehensive D&O policies available. With over 40,000 associations already relying on KDIS, you can be confident in the depth of support you’re offering.
Call us today to learn how KDIS can help you deliver directors and officers insurance for condo associations that protects people, preserves trust, and meets the demands of modern governance.
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.