Even your HOA or Condo board could put your personal assets at risk.
If you serve on any kind of board—corporate, nonprofit, HOA, or condo association—you need to be thinking about board member liability insurance. Too often, people step into these roles without realizing the personal risk involved.
Serving on a board comes with serious responsibilities. One often-overlooked aspect is the personal liability exposure that comes with making decisions as a board member.
If your board makes a decision that leads to financial loss, a lawsuit, or an allegation of mismanagement, you—as an individual board member—could be named in the lawsuit. That means your personal assets, such as your home, savings, or investments, could be at risk if you’re not protected.
This is where Directors & Officers Liability Insurance becomes essential. This type of policy protects individual board members from personal financial loss in the event of a lawsuit alleging wrongful acts committed in their leadership roles. These could include breach of duty, misrepresentation, or failure to comply with laws and regulations. And the source of the lawsuit could be just about anyone—employees, vendors, clients, residents, or even fellow board members.
It’s important to understand that you don’t have to do anything wrong to be sued. Simply being part of the board when a decision is made can make you a target. Directors & Officers Liability insurance provides a financial safety net, covering legal defense costs, settlements, or judgments that might otherwise fall to you personally.
Many people assume that this kind of protection is just for large corporations, but that’s not the case. Even small associations, clubs, and volunteer boards are exposed to legal risks—and often lack the resources to weather a claim without coverage. If your board doesn’t carry board member liability insurance, you’re potentially putting your own finances on the line every time you vote or participate in a decision.
Whether you’re chairing a nonprofit board, serving as secretary for your condo association, or simply volunteering your time on a neighborhood committee, make sure the proper protections are in place. Board member liability insurance isn’t just a corporate necessity—it’s personal protection for real people doing good work.
Not sure if your board is covered? Let’s talk through your risks and make sure you have the right protection in place.
