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Understanding EO and DO Insurance for HOAs

Homeowners’ associations are tasked with seeing to the needs and best interests of the communities they serve. From community upkeep to ensuring that neighborhood best practices are adhered to, these homeowners’ associations or HOAs carry a great responsibility and are exposed to various operational risks and potential liabilities. Two types of insurance, E&O and D&O can help cover an HOA’s exposures to claims and liabilities, but it’s important to understand these policy types and what they specifically address.

Comparing E&O and D&O Coverages

E&O stands for errors and omissions and is also known as professional liability insurance. This coverage protects the insured from claims due to errors, omissions, and other negative outcomes as a result of their actions. Such a policy covers any actions for anyone affiliated with an HOA, including employees. D&O stands for directors and officers liability. This coverage specifically protects the directors, officers, and other senior positions in the HOA. This policy would protect individual members of an HOA from claims.

Protecting my Community Association

According to providers of homeowners’ or community association directors and officers insurance, it may be beneficial to have both. E&O and D&O protections cover the individuals as well as the entire board and employees, where applicable. As you explore the needs of your community association, considering talking to an insurer about creating a comprehensive plan.