Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
How to Protect Your
Board of Directors
Best Practices for
Building Management Associations
Did You Know?
Good intentions won’t protect building associations and their boards of directors
from legal claims.
Directo...
What Does D&O Insurance Cover?
Your organization needs to ensure your board is able make decisions without fear of
persona...
What is NOT Covered Under D&O Insurance?
Some of the most common exclusions are:
• Fraud or illegal activity
• Property da...
How to Avoid Claims in
the First Place
The right insurance coverage is
only part of the solution.
Building management
asso...
Best Practices for Optimal Protection
In addition to Directors and Officers Liability Insurance, following these can often...
1. The Right Board Members
• Elect board members who are serious and understand what their
responsibilities will entail.
•...
2. Bylaws
Acceptance
Require new residents to
read and sign-off on the
bylaws and other
regulations when they move
in. Thi...
3. Review Governing Documents
• Review bylaws and other
governing documents
regularly (at least once
each year) to ensure ...
4. Retain Counsel
Retain association counsel and
hire professionals for decisions
that fall outside the board’s
comfort zo...
5. Resident Communications
11
Provide a system that allows
residents to address problems or
grievances. Timely communicati...
6. Accurate Minutes
12
Keep good records and accurate
minutes of board meetings. Failure
to document amendments to
bylaws ...
7. Complaint & Response Log
Maintain a complaint log that includes details on association/board
response to complaints. Su...
8. Keep Meetings Professional
Follow a basic guide like Robert’s Rules of Order for running meetings
as a way to remove em...
Recap
• Protect your directors and officers with D&O liability insurance
• Have the right board members working with you
•...
16
877-576-5200
Be sure to implement these best practices to reduce liability risks.
If you have additional questions abou...
Upcoming SlideShare
Loading in …5
×

0

Share

Download to read offline

How to Protect Your Board of Directors

Download to read offline

Best Practices for Building Management Associations

Related Books

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

How to Protect Your Board of Directors

  1. 1. How to Protect Your Board of Directors Best Practices for Building Management Associations
  2. 2. Did You Know? Good intentions won’t protect building associations and their boards of directors from legal claims. Directors and officers (D&O) liability insurance is essential for protecting the association and its board members from lawsuits that result from actions or decisions made while serving. 2
  3. 3. What Does D&O Insurance Cover? Your organization needs to ensure your board is able make decisions without fear of personal financial consequences. Directors and Officers Liability Insurance commonly covers: • Defense costs and financial losses for claims made against current, previous and future directors and officers while serving on your board • Employment practice allegations or other HR issues • Reporting errors • Failure to comply with regulations • Personal injury (not to be mistaken for bodily injury): libel, slander or defamation allegations 3
  4. 4. What is NOT Covered Under D&O Insurance? Some of the most common exclusions are: • Fraud or illegal activity • Property damage or bodily injury • Existing lawsuits already started before policy term • Breach of contract 4
  5. 5. How to Avoid Claims in the First Place The right insurance coverage is only part of the solution. Building management associations are encouraged to follow these best practices to protect the association and its board of directors… 5
  6. 6. Best Practices for Optimal Protection In addition to Directors and Officers Liability Insurance, following these can often be the best protection: 1. The Right Board Members or Committed Board Members 2. Bylaws Acceptance 3. Up-to-Date Governing Documents 4. Professional Counsel 5. Resident Communications 6. Accurate Minutes 7. Complaint & Response Log 8. Professional Meetings 6
  7. 7. 1. The Right Board Members • Elect board members who are serious and understand what their responsibilities will entail. • Provide training for all board members • Make sure members have a good understanding of the association’s bylaws and other governing documents. • Many claims result from boards’ failure to uphold the building bylaws or follow other rules. 7
  8. 8. 2. Bylaws Acceptance Require new residents to read and sign-off on the bylaws and other regulations when they move in. This step can help avoid infractions and misunderstandings later. 8
  9. 9. 3. Review Governing Documents • Review bylaws and other governing documents regularly (at least once each year) to ensure that they remain up to date. • Changes in local law, for instance, may require amendments to keep the property in compliance. 9
  10. 10. 4. Retain Counsel Retain association counsel and hire professionals for decisions that fall outside the board’s comfort zone. 10
  11. 11. 5. Resident Communications 11 Provide a system that allows residents to address problems or grievances. Timely communication can help keep small issues from escalating into big ones.
  12. 12. 6. Accurate Minutes 12 Keep good records and accurate minutes of board meetings. Failure to document amendments to bylaws and other governing documents can cause problems in the event of legal action.
  13. 13. 7. Complaint & Response Log Maintain a complaint log that includes details on association/board response to complaints. Such records can establish precedent and reduce the likelihood of inconsistent actions. 13
  14. 14. 8. Keep Meetings Professional Follow a basic guide like Robert’s Rules of Order for running meetings as a way to remove emotions and personalities from the equation. 14
  15. 15. Recap • Protect your directors and officers with D&O liability insurance • Have the right board members working with you • Have residents accept bylaws and acknowledge with a signature • Keep governing documents updated regularly • Retain professional legal counsel for issues the board can or shouldn’t handle • Allow for easy communication with residents • Keep accurate minutes as records of discussions and decisions in case of a lawsuit • Ensure consistent decisions and communication with a complaint & response log • Keep meetings professional with Robert’s Rules of Order 15
  16. 16. 16 877-576-5200 Be sure to implement these best practices to reduce liability risks. If you have additional questions about how to protect your board or need D&O liability insurance information, call City Building Owners Insurance Program. citybuildingowners.com

Best Practices for Building Management Associations

Views

Total views

432

On Slideshare

0

From embeds

0

Number of embeds

92

Actions

Downloads

1

Shares

0

Comments

0

Likes

0

×