Every Association should obtain liability insurance for its directors and officers. This insurance covers not only directors and officers but also, in many cases, the Association for actions undertaken by its directors and officers.

The question here is whether committee members are also insured. The Association should check with its insurance agent to determine whether committees (and also volunteers) are covered under the policy. If they are not, the Association should consider an endorsement adding such coverage.

As to fining committee members, even though the committee simply determines whether or not to approve of a fine adopted by the board of directors, fining committee members could still be brought into a lawsuit by an angry owner wishing to make a point.

In summary, the Association should insure that the directors and officers liability policy covers not only directors and officers, but also committee members and volunteers as well. Should the Association have any questions, please feel free to contact the Firm.

Article Written by: Jay Steven Levine