Those that devote their time to association matters have responsibility and potential personal liability for decisions they make. Condo building directors and officers spend a lot of time reviewing construction bids, approving budgets, and making decisions on behalf of unit owners. To take on this responsibility without protection can be risky. A Condo Single Building Directors & Officers Liability Insurance policy helps protect board members from claims arising from those decisions. What is covered?

General liability policies typically cover bodily injury and property damage. Directors & Officers (D&O) insurance, by contrast, is designed to cover defense costs, settlements and judgments arising from allegations of wrongful acts by board members and officers — such as breach of fiduciary duty or errors in governance. Even after you leave the board, a claim can still be made against you for past actions. Common Directors and Officers claims

• Election disputes — if an election result is challenged and litigation follows to determine rightful board members.
• Breach of fiduciary duty — owners may allege directors violated condominium statutes or governing documents.
• Wrongful termination — an employee may sue for unfair firing and unpaid wages or overtime.
• Discrimination — a prospective buyer or resident may allege a denied application or treatment was discriminatory, seeking attorney fees and damages.

In the examples above, a Condo Single Building D&O policy will typically respond to legal defense costs and settlements, subject to the policy terms, limits and exclusions. For more details about coverage tailored to a single-condo building, see Condo Single Building Directors & Officers (D&O) Liability Insurance. If your association is larger or covers multiple buildings, you may also want to review options for broader association exposures such as Condominium Association Directors and Officers (D&O) Insurance. D&O policy language is not standardized the way many general liability or commercial property forms are. That means underwriting factors, exclusions and definition of a “wrongful act” can vary. It’s important to understand exclusions for professional services, intentional acts, or contractual liabilities and to consider related coverages like commercial liability, property coverage, or commercial auto exposure when the association operates vehicles or equipment. A short risk scenario: approving a contractor without proper vetting could lead to construction defects and a claim alleging negligent oversight — a situation that may trigger a D&O claim and associated defense costs. Associations, condo boards, and small community operators commonly seek D&O protection to manage these governance and operational liability exposures. Having a knowledgeable independent agent can help you compare policy language, limits, and any additional risk management services. For resources on boards in other property types and how decision-makers are protected, see Protecting Decision-Makers: Why Commercial Communities Need Directors and Officers Insurance. D&O coverage helps protect personal assets and association funds from the cost of litigation and settlements, and it supports better decision-making by reducing the personal financial exposure of volunteers and elected officers. Your association’s specific exposures, claim history, and the scope of the board’s authority are common factors that influence underwriting and premium. Our agents have knowledge and experience in insurance matters and they will help you acquire and understand a Condo Single Building Directors & Officers Liability Insurance policy that is right for you.

Frequently Asked Questions

Do D&O policies cover mistakes made while managing association funds?

Yes — most D&O policies respond to claims alleging financial mismanagement or breach of fiduciary duty, but coverage depends on policy language, limits, and any applicable exclusions.

Will a D&O policy pay for legal defense even if the claim is without merit?

Typically, D&O policies cover defense costs for claims that fall within the policy’s insuring agreement, but how defense costs are handled (inside or outside the limit) varies by policy form.

Should a small condo association buy D&O insurance?

Many small associations purchase D&O coverage to protect volunteer board members from personal liability; whether it’s appropriate depends on the association’s size, governance complexity, and risk tolerance.

Still have questions? Talk to a local insurance expert.