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Personal Lines Tips You Can Use

One of the best ways for agents and brokers to impress and build credibility with their clients is to provide advice and suggestions that help them reduce their risk of loss and their insurance expenditures. And if you are like many insurance professionals, you are continuously seeking unobtrusive ways to contact your customers to remind them that you are there for them. Providing cost-saving risk management advice is certainly one way to do this. Many firms are also in search of high-quality content to include on their websites to encourage people to visit and to attract search engine traffic. Thus, we offer you the monthly "Tip You Can Use" in each issue of Personal Lines Pilot to help you achieve all of these objectives. You are free to use this month's tip any way you wish, subject to the license terms included below. Simply copy the tip, paste it into your website or newsletter, and make any formatting adjustments, being sure to leave the copyright attribution and Web links as per the license agreement below.

This Month's Tip

Properly Cover Your HO/Condo Association Loss Exposures

Many people are active in their condominium or home owners' association, serving as directors, officers, and editors of association newsletters. If you are an active member of your association, consider the following risk management tips and recommendations.

  • Verify that the association has directors and officers (D&O) coverage in force with reasonably high limits. If the association refuses or chooses not to obtain D&O coverage, seriously reconsider your leadership activities within the group due to your unprotected liability exposure.

  • If D&O coverage is in place, verify that this policy provides errors and omissions coverage for the proper purchase of insurance. To do this, verify that the "failure to maintain insurance" exclusion is not attached to the D&O policy.

  • Ask your association to hire an independent insurance consultant to audit the association insurance program to uncover any potentially lethal coverage gaps. For example, home owners' associations should have at least the following types of coverages: guaranteed replacement cost property coverage for common areas, commercial umbrella coverage, workers compensation insurance (even if there are no association employees) to cover claims brought by uninsured independent contractors, and D&O liability coverage.

  • If you don't already have it, consider adding a personal injury (HO 24 82) or related endorsement to your homeowners policy.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2012
International Risk Management Institute, Inc.


Important Reproduction License Terms

We're happy to make personal lines tips available to you at no charge, but we must make a few requirements to protect ourselves and our intellectual property rights. We require that you leave in place the IRMI copyright notice included at the bottom of each of these tips to acknowledge that a significant degree of originality was required and utilized in the creation of these articles. If the tips are included on a website or in an e-mail or electronic newsletter, we also require that you leave in place the active link to the IRMI website that we have included there. If you include a number of the tips on a single page in your website, it is only necessary to include the IRMI copyright and active link in one place on that page.

While these tips were carefully researched by our personal lines experts, they are of necessity general in nature and not intended as legal, consulting, or other professional advice. They may also become outdated over time as business conditions and insurance industry practices change. We provide them to you "as is," and it is your responsibility to assure that the advice they provide is applicable to your geographic area, the insurers you represent, your state's insurance regulations and environment, etc. If you place them on your website, you should also review them from time to time to assure that they are still up-to-date and correct given changes in the insurance marketplace, regulatory environment, or practices. We are providing you with the use of these tips at no cost to you, and your use of them indicates that you agree that you will not attempt to hold IRMI responsible for any liability or damages arising from your use of these tips.

Lastly, while we assume no obligation to notify you that any of these tips should be removed from your website for any reason, such as their becoming out-of-date, you do agree to remove them as soon as possible if you ever receive a request from us to do so.


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