HOA Board of Director & Officer Liability
Community Associations : Alabama & Florida
Board of Directors (BOD) may be liable for actions on behalf of the Homeowner Association (HOA).
Fiduciary Duty: Upon acceptance of the position, trust & confidence are imposed on the directors and officers to act in good faith, with prudence and diligence, in the best interest of the homeowner association members, regardless of cost. Insurance: As part of risk management, the homeowner association should have a Directors and Officers Liability Policy with coverage that protects officers and directors from personal liability for their actions on behalf of the Association. Protection is only available when certain conditions are met.
The Board of Directors must be proactive and avoid any appearance of conflict of interest; the BOD should never perform any work for the homeowner association – always use the expertise of unbiased, third-parties…