With more than 42,000 community associations as clients, Ian H. Graham (IHG)—available through Affinity Specialty Program Network (ASPN)—is a leading program administrator for Directors’ & Officers’ (D&O) liability insurance tailored specifically for the unique needs of community associations.
Overview of the Program from ASPN
This stand-alone D&O liability policy, underwritten by CNA, is crafted to meet the specific exposures faced by community associations. Many commercial package policies offer limited D&O coverage when endorsed, often failing to address crucial risks. In contrast, this program offers a purpose-built solution that includes custom coverages like non-monetary claims, community by-law discrimination, and protection for developers serving on boards.
Ideal Accounts and Appetite
This program is designed for nonprofit community associations, including:
- Homeowners Associations (HOAs)
- Condominium Associations
- Property Owners Associations
- Commercial Associations
- Timeshares and Cooperatives
- Planned Urban Developments and Master Associations
You might have a client managing a mid-size HOA or a commercial mixed-use community seeking broader protection for board members and property managers. This program is a strong fit for those types of risks, especially when more robust D&O terms are needed beyond a basic endorsement.
Coverage Highlights and Advantages
Key features of the program include:
- Automatic Coverage for Property Managers: No need for separate policy endorsements when the property manager changes.
- Softened Hammer Clause: If the insured refuses a settlement offer, CNA will still cover 80% of the additional loss.
- Mediation Credit: Up to a 50% deductible credit if a claim is resolved through third-party mediation within 60 days.
- Third-Party Discrimination Coverage: Includes protection for non-employment related discrimination claims.
- Broad Definition of Insured: Covers current, past, and future board members, employees, volunteers, and property managers.
- Defense Outside Limits: Legal expenses are paid in addition to the policy limit.
- Prior Acts and Extended Reporting: Full prior acts coverage, plus optional tail coverage for up to 12 months post-expiration.
- Comprehensive Claim Definition: Includes civil, criminal, administrative proceedings, and written demands.
- Developer Coverage: Includes developer board members, with continued coverage after they leave the board.
Underwriting Notes and Considerations
This is a stand-alone, admitted policy underwritten by CNA. While the premium may be higher than package policy endorsements, the depth of coverage and added protections offer significant value for qualified risks. The underwriting process considers prior litigation and requires proof of expiring coverage for continuity.
Territories and Availability
The program is available in all 50 states plus the District of Columbia. Whether your client is in California, Florida, Texas, or anywhere in between, you can access this coverage through ASPN.
Why Work With ASPN and Ian H. Graham?
ASPN and Ian H. Graham bring unmatched expertise in the community association niche. With decades of specialized experience and a longstanding relationship with CNA, they offer a seamless experience for agents and brokers. Their deep understanding of association risks and commitment to tailored solutions make this program a reliable option when you need comprehensive D&O coverage for your insureds.
All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.
Frequently Asked Questions
What types of accounts are a good fit for this D&O program?
This program is ideal for nonprofit community associations such as HOAs, condo associations, property owner groups, timeshares, and planned developments.
How does the stand-alone D&O policy differ from a package policy endorsement?
Unlike endorsements that offer limited protection, this stand-alone policy includes custom coverage for unique exposures like non-monetary claims and community by-law discrimination.
Is prior litigation a disqualifier for coverage?
Not necessarily. Prior and pending litigation is reviewed during underwriting, and coverage may still be available with proof of expiring coverage.
Who is considered an insured under this policy?
The definition of insured includes the association, its board members (past, present, and future), employees, committee members, volunteers, and contracted property managers.
Is this program available nationwide?
Yes, the program is available in all 50 states and the District of Columbia.
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