Community Development & Maintenance

Sanitary and Improvement Districts, Homeowners Associations (HOA), Artisan contractors, Home maintenance service providers

As a board member serving your community as part of the team of trustees and directors for your SID or HOA, it is important to be fully aware of your legal responsibilities. It is also important to understand the scope and levels of immunity you may be afforded based on your location and the type of entity you are providing your services to.

We've Got you Covered

Even well defined roads can

have unseen risks

As a quasi-municipal entity or political subdivision you are potentially afforded governmental immunities to the types claims you are liable for as well as caps on claims and reduced time limits for which a claim can be brought.  Even so, you still face considerable liability exposures within the confines of the statutes and are subject to potentially unforeseen changes in those statutes or legal interpretations.when 

Liability 

  • General premises and operations

  • Public Officials

  • Directors and Officers

  • Management/Executive Liability

    • Employment Practices​

    • Employee Benefits

  • Cyber

  • Excess/Umbrella

Property 

Varies significantly dependent upon whether you work from home, lease your office or own your building.  

  • Loss to electronic equipment (computers, printers, servers) and records from: power failure or surges, malicious attacks on computer hardware and software, loss or irreparable damage while traveling

  • Faulty wiring or overheated equipment

  • Fund misappropriation and theft

People

  • Workers' Compensation and Employers' Liability

  • Volunteer Accident and Health

Automobile

  • Owned Autos

  • Hired Autos

  • Non-owned auto

Liability Coverages Defined

  • Public Officials Liability (POL) / Directors & Officers (D&O)

    • Employment Practices Liability (EPL)

  • Cyber - While coverage for cyber perils is far from standardized some key liability coverages available are:

    • Data breach mitigation

    • Network security liability

    • Funds transfer fraud

    • Media liability

    • Social engineering

    • PCI, Regulatory proceedings and assessment 

  • Management/Executive Liability While coverages can be purchased separately, a more encompassing program includes key management liability coverages in one offering, reducing your chances of having unintended gaps, which could leave your organization and you personally open to significant financial consequences.

    • Employment Practices Liability (EPL) 

    • Fiduciary 

      • Employee Benefits Liability (EBL) 

 

Some things to consider:

 

  • Limits of protection relative to your risk profile, the legal climate of your location(s), your client profile and the overall cost of insurance

  • Defense costs provided within or outside of limits for your liability covers

  • Defense provision basis (right and duty, at carrier option, etc.)

  • Basis of coverage, claims-made vs. occurrence

    • Are claims-made step factors utilized?

  • Presence of hammer clauses

  • 1st and 3rd Party coverage for Cyber and/or your EPL coverages

  • Interplay of Side A, B and C limit availability in D&O coverage

  • When purchased as a full Management Liability suite, are limits shared and if so, how

Meant to cover you and your business for loss allegations from and indemnification of third parties (e.g. customers, visitors to your premises, shareholders, competitors, etc.) arising from bodily injury, property damage or financial damage.  While you'll face some normal general liability and exposures, as a financial firm in a highly digitized environment your highest severity exposures will likely come from the professional advice, fiduciary responsibilities and services you offer as well as your exposure to Cyber loss.

CGL
Cyber
Management Liability
Financial Professional E&O
CGL
Cyber
Management Liability
Image by Nick de Partee
Things to Consider
  • Limits of protection relative to your risk profile, the legal climate of your location(s), your client profile and the overall cost of insurance

  • Defense costs provided within or outside of limits for your liability covers

  • Defense provision basis (right and duty, at carrier option, etc.)

  • Basis of coverage, claims-made vs. occurrence

    • Are claims-made step factors utilized?

  • Presence of hammer clauses

  • 1st and 3rd Party coverage for Cyber and/or your EPL coverages

  • Interplay of Side A, B and C limit availability in D&O coverage

  • When purchased as a full Management Liability suite, are limits shared and if so, how

Property Coverages Defined

Focused on indemnifying you for a covered loss to buildings and associated equipment, your business personal property, valuable papers and records, and business income.  It's important to remember you are only made as whole as your coverage is structured for and your causes of loss are applicable to.   Given the generally straight forward property exposures of many advisory firms, your core property, including business income, and general liability needs can likely be met by a BOP (Businessowners Policy) with a few added endorsements.  

Other Property
Fidelity
Business Income
Business Personal Property
Cyber1stParty
Building
  • Building

  • Business Personal Property

  • Equipment Breakdown

  • Cyber - 1st Party

Some things to consider:

  • Coinsurance requirements

  • Covered causes of loss: Multiple forms exist, ensure you have the right one for your circumstance.

  • Coverage needs for property away from your business location: Dependent upon the types of property you travel with or move from office to 

  • Deductibles 

  • Loss reimbursement basis:  Actual cash value, replacement cost, agreed to value, functional value or other basis determines the level of indemnification you might receive.

Wandering Traveler
Things to Consider
  • Coinsurance requirements​

  • Covered causes of loss: Multiple forms exist, ensure you have the right one for your circumstance.​

  • Coverage needs for property away from your business location: Dependent upon the types of property you travel with or move from office to ​

  • Deductibles ​

  • Loss reimbursement basis:  Actual cash value, replacement cost, agreed to value, functional value or other basis determines the level of indemnification you might receive.

Additional Coverages & Protection

Beyond your property and key liability coverages, you may have need for additional coverage, dependent upon: whether or not your firm has the number of employees in a state requiring you to provide workers' compensation coverage, whether you provide vehicles for your team to use in business or have them drive or rent autos on behalf of the business, your desire to obtain higher limits of insurance than can be obtained by your primary liability policies.

 

 

 

 

 

 

 

  • Workers' Compensation

  • Employers Liability

  • Hired and Non-Owned Auto

  • Excess/Umbrella

    • In Nebraska, SIDs can be held liable for up to $1MM per person and  $5MM per occurence if multiple claimants are involved. 

  • Environmental Impairment Liability

  • Public Officials Bonds

    • NE SIDs require $5,000 bonds for the chairperson and $20,000 for the clerk

Some things to consider:

  • State requirements for providing Workers' Compensation coverage based on business legal structure and employee counts

  • Even if you are not required by law in your state to provide Workers' Compensation, do you have employee exposures which you could be liable for, creating a coverage gap

  • Required underlying limits to prevent coverage gaps between primary and excess coverages

  • ALevel of 

WC
Hired and Non-Owned
Excess and Umbrella
Business Auto
EL

Services

There are times when what you are exposed to isn't fully clear.  

  • The Distinction Way risk profile assessment, coverage analysis and insurable risk mitigation assistance

  • Partner provided services

    • Access to risk control experts with over two decades of i

    • Access to risk management and loss prevention hotline for professional exposures

Content on this page is for informational purposes only and may not be applicable to all circumstances.