Association Management Group’s President, Paul Mengert, Urges Community Associations to Prioritize Directors and Officers Insurance Coverage

Community associations, including condominium and homeowner associations, should prioritize Directors and Officers (D&O) insurance coverage, according to Paul Mengert, President of Association Management Group (AMG). AMG is one of the leading community association management companies in the Carolinas. 

“Some mature associations have full insurance programs that do not include D&O insurance coverage,” said Mengert. “This omission is an unacceptable risk. Board members should not be exposed to personal liability for decisions made in a volunteer role.” Mengert also noted that D&O insurance policies are not created equal, and community associations should carefully review what is covered and what is not covered in certain policies. 

Mengert pointed out that one of the most common types of claims (lawsuits) filed against community associations is discrimination-related claims / suits. Therefore, he said, community associations should pay particular attention to discrimination coverages in D&O policies.

The Community Associations Institute (CAI) has highlighted the increasing number of lawsuits against community associations in recent years. Mengert echoed CAI's concerns, stating that without D&O insurance coverage, board members may face personal liabilities, leading to financial ruin. This absence of insurance coverage may also have a chilling effect on volunteerism in community associations, leading to decisions that are not in the best interest of the community. 

Mengert urged community association leaders to consult their licensed insurance advisors to make sure they have D&O and that the coverage meets their needs. 

Paul K. Mengert, CEO

Association Management Group, Inc. 

www.AMGworld.com