CAI-NJ Nov. 2021(w)

D&O... from page 35.

Wilkin Management Group , Inc. 30 Years of History

or breach of employment agreement, to name a few. In most policies, the definition of an “insured person” normally includes past and present board members, committee members, volunteers, and the community management compa- ny, as well as the association itself. This important provision protects you long after you’ve left the board and an action names you. Critically, legal defense costs are included within the limit of liability on most policies. Additional amounts of defense coverage are available to augment this portion of the policy. More often than not, the cost of defense far exceeds any actual award or settle- ment. In addition, higher limits of cov- erage are available through an excess liability umbrella policy which should be written to sit over your primary D&O policy and coverage. As with any insurance contract, exclusions apply. Typical ones are those arising from and related to con- struction defects, bodily injury, sick- ness, disease, death, emotional dis- tress or mental anguish. Deliberately fraudulent or dishonest acts are excluded as well. Consult with your insurance agent to determine whether there is a need or avenue to provide coverage for any such exclusions. In sum, before you proudly walk the community as a newly elected board member, your first order of business is to be certain your association is behind you with the proper insurance coverage. n

For over 30 years, Wilkin Management Group has held to an unshakeable corporate philosophy of Creating Value for Our Clients. Our People , Process and Performance demonstrates an un-wavering commitment to do so. With locations in Northern and Central NJ Visit us on the web at www.WilkinGrp.com | 201.560.0900

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