You may think that since your association has general liability insurance, you’ll be protected if a member sues you and your fellow board members. Not so. General liability insurance protects the association from personal injury and property damage claims. It doesn’t protect board members from claims that their actions have damaged the association or its members.
That’s where directors and officers (D&O) insurance comes in. It protects directors and officers from claims that they failed to act or acted wrongfully in their individual or group capacity on behalf of the association.