If you are head of an HOA, you may not think you need insurance. After all, all the HOA activities are performed by volunteers. Unfortunately, their volunteer status does not protect them from lawsuits. HOA insurance is important, and you’ll be glad you have it if anything ever goes wrong.
It takes the whole neighborhood’s involvement to keep the area clean, manicured and fun for everyone. To do this, volunteers may do landscaping work or trash pickup. They may sit in as lifeguards at the community pool. If one of them gets hurt, however, the HOA could get sued for their medical expenses. With a workers’ compensation policy, the medical bills can be covered without the need for legal services to get involved. Even if attorneys end up being hired, some policies cover that cost, too.
You also need liability policies to protect your volunteers. D&O liability protects your board if someone accuses a member of harassment, negligence or other alleged misconduct. Crime and fidelity bonds protect the HOA itself if one of its members does commit a crime against it.
You want your HOA to be active and your members to be involved. The more people who get involved, however, the more problems you and the board might face. Protect volunteers with sufficient HOA insurance.