Crime/Financial Fidelity

Protection for Community Association Leaders

Community association boards and managers can be sued over housing and employment discrimination, architectural disputes, inadequate reserves, negligence, and other exposures. We offer you peace of mind in the form of tailored D&O liability, EPL, and crime insurance protections.

Product Overview

  • First insurance policy specifically written for community associations (condominiums, cooperatives, homeowners, property owners, commercial communities, and interval or timeshare communities) and property managers.
  • Broad coverage is available for D&O liability, EPL, and crime, separately or all in one policy:
    • D&O liability coverage insures board members against having to pay compensatory damages out-of-pocket, attorney fees, and other legal costs associated with suits alleging mismanagement, self-dealing, conflict of interest, housing discrimination, acts beyond authority granted by CC&Rs, violation of certain federal and state laws, breach of contract, and breach of fiduciary duties.
    • EPL coverage protects board members and the association against settlements and damages resulting from charges of discrimination, sexual harassment, and wrongful termination.
    • Crime coverage protects the association from losses resulting from employee theft, disappearance of money and securities, forgery, funds transfer fraud, credit card fraud, and other criminal acts.
  • Broad definition of insured persons includes past and present directors, officers, trustees, employees, and committee members, as well as property managers and their employees.
  • Covers “second generation” claims arising from property damage, other than those related to a construction defect or specified perils.
  • Provides coverage for property manager wrongful acts, including acts, errors, and misstatements made while providing real estate property management services at the direction of the association board.
  • Protection for Community Association Leaders D&O and EPL written on a claims-made basis; crime written on a loss-sustained basis.
  • Duty-to-defend coverage means that Chubb will appoint experienced counsel to defend the insured should you be sued.