3. D&O Claims Trends
• D&O Claims for Community Associations have mostly
plateaued in the last 3 years in terms of frequency.
• Costs to Defend and Litigate these claims continue to rise.
• New York City continues to be one of the costliest cities to
defend and litigate Community Association D&O claims in
the country.
• Shifts in types of claims.
6. Crime Claims Trends
• As the economy continues to slowly recover, employees
and board members who are usually honest may still
become desperate and skim association funds.
• Technology has made it so hackers and fraudsters have
unprecedented tools in order to target associations of all
sizes.
• Managing Agents continue to be the first line of defense
against theft of association funds, but are also the largest-
growing source of Crime claims.
8. Social Engineering Claims
• When an employee, managing agent, or board member
is intentionally misled into sending money or diverting
a payment based on fraudulent information that is
provided to them in a written or verbal communication such
as an email, fax, letter or even a phone call.
• Targeted attacks on businesses of all sizes (including
Community Associations) have risen 91% over the last year,
and there are over 100,000 social engineering attacks
launched each day according to Symantec Internet Security.
9. Social Engineering Claims
• Traditional Crime Policies exclude the willful parting of
funds.
• Insures submitted claims under Computer Fraud and Funds
Transfer Fraud insuring agreements expecting coverage
• Most Social Engineering claims for Community Associations
come as a result of human error.
• Some insurers are now offering endorsements which
provide limited coverage for this exposure.
10. Emerging Exposures
• Public Accommodation / ADA Claims
• Tax Fraud Claims
• Pollution and Smoke-Related Claims
• Cyber / Data Breach Claims
