Correction: In an earlier post I said I was told by a reliable source that we DID NOT have D & O insurance.

I need to correct that post. My source was wrong.

The good news is: We do have Directors & Officers Insurance. The insurance is purchased by an HOA to pay for any legal fees and other expenses incurred in defending claims made against an HOA.

Our agent: Jack Hays
(979) 345-2271

Deerfield Insurance
Policy # ON-104613
Policy Period 11/3/02 - 11/3/03
(847)572-6000

The insurance company needs to be notified as soon as the legal issues begin.

The bad news is: Why has our BOD NOT USED this insurance?

How does D & O Insurance work


Sal,

To my knowledge, Directors & Officers Insurance works very much like Term Life Insurance. In order to get the benefit, you must DIE first.

Lisa

What is D & O?

Directors of all companies are now held, at an unprecedented level, to be personally responsible for any actions and decisions they make on behalf of the company - putting their personal assets at risk if those decisions are tested in the courts.

Legally, the directors of a company and the company itself are separate entities and so may both be defendants, separately or jointly, in any legal action or prosecution. To protect the personal assets of individuals and, crucially, to cover the costs of their defense, Directors & Officers Insurance is widely used.

Furthermore, Directors & Officers Insurance extends to protect the company itself, rather than leaving it to fund its own defense.

We paid for it.

Why aren't they using it?

D&O Ins.- pays the sins of Board


Sal,

To my knowledge, D & O Insurance does not protect the homeowners' association. The insurance will pay a price for the sins committed by our dear Board members. Homeowners will pay a price too - future higher insurance premium.

Lawyers LOVE D & O Insurance. It is a lot easier to go after the insurance companies than to go after the wrongdoers. Lawyers are in business for money, not for justice. That's why I decided to take the hard evidence directly to the DA Office and to Uncle Sam.

Lisa