It is common to see that the association manager has been left off the D&O coverage in a condo association insurance or HOA insurance policy. On most condo association insurance policies, this is not fixed by a typical additional insured endorsement as it is with general liability coverage. They normally charge extra premium and ask additional questions about the association manager to allow for the D&O coverage. This is important coverage because an error of communication can create a situation where this type of suit can happen.

An example of this is when the board has put condo rules in place where late pays will not be tolerated. If you have been late two months in a row, they will begin legal proceedings against the owner. If, for example, the first month the owner pays late by a few days and the next month he is accidentally left on the list of delinquent owners, the board will file suit against the owner. The owner will counter-sue for defamation of character. Without the condo association manager being named to the D&O coverage, there will be no condo association insurance or HOA insurance coverage for the claim.