Yes — and this is one of the most important coverages an HOA board can carry. HOA board members are volunteers making binding decisions on behalf of all homeowners. They can be personally sued for:
- Selective enforcement of rules
- Financial mismanagement
- Discrimination claims
- Failure to maintain common areas
- Improper denial of modification requests
- Breach of fiduciary duty
- Employment-related actions involving staff
General liability insurance does NOT cover these claims. It only covers bodily injury and property damage. D&O insurance is specifically designed for claims arising from board decisions and management actions.
Without D&O coverage, a board member’s personal assets — their home, savings, and investments are directly at risk. Recruiting and retaining qualified board volunteers becomes extremely difficult when personal liability is unprotected. Most HOA attorneys strongly recommend D&O coverage as an essential part of every HOA insurance program.
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