FL HOA Directors & Officers Insurance

Protect your Florida HOA board from personal liability lawsuits. D&O coverage for breach-of-duty, election disputes, and assessment-collection claims.

Frequently Asked Questions

Is D&O insurance legally required for Florida condo and HOA boards?

D&O insurance is not specifically required by Florida statute for condominium or homeowners associations. However, it is considered essential by virtually all insurance professionals and property management companies. Board members have a fiduciary duty under Florida Statute 718.111(1)(d) to act with the care of an ordinarily prudent person, and without D&O coverage, they face personal financial exposure if sued for decisions made in their board capacity.

What does D&O insurance cover for HOA and condo board members?

D&O insurance covers defense costs and settlements arising from claims of breach of fiduciary duty, breach of contract, defamation, discrimination, employment disputes, wrongful foreclosure actions, failure to maintain common elements, selective enforcement of rules, and mismanagement of association funds. It protects individual board members from having to pay legal defense costs out of their own pockets.

How much does D&O insurance cost for a Florida condo or HOA?

D&O insurance for Florida community associations typically costs between $1,500 and $8,000 per year depending on the number of units, claims history, coverage limits, and whether the association has had prior lawsuits. A 100-unit association with no claims history might pay $2,000-$4,000 per year for $1 million in coverage. Larger associations or those with claims history will pay more.

What is the difference between claims-made and occurrence D&O policies?

A claims-made policy covers claims that are both made and reported during the active policy period, regardless of when the alleged wrongful act occurred (subject to the retroactive date). An occurrence policy covers wrongful acts that occur during the policy period, regardless of when the claim is filed. Most D&O policies for community associations are claims-made, which means maintaining continuous coverage is critical to avoid gaps.

Can individual HOA board members be sued personally in Florida?

Yes. While Florida Statute 718.111(1)(d) provides some protection for directors acting in good faith, board members can be held personally liable for criminal violations, transactions from which they derived improper personal benefit, recklessness, conscious disregard for the best interests of the association, or acts committed in bad faith. D&O insurance is the primary protection against the financial consequences of such lawsuits.

Does D&O insurance cover employment-related claims against the association?

Many D&O policies include Employment Practices Liability Insurance (EPLI) coverage, which protects against claims of wrongful termination, harassment, discrimination, and wage disputes brought by association employees such as maintenance staff, office administrators, or security personnel. If your association employs staff, make sure your D&O policy includes EPLI coverage or obtain it as a separate policy.

Get a free quote or call (904) 900-5063 — Atesa Risk Advisors, independent Florida insurance brokerage.