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Why does a board member need the HOA to carry Directors and Officers Insurance?

April 26, 2017carry Directors hoa Insurance Officers

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Why does a board member need the HOA to carry Directors and Officers Insurance?

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Without insurance to pay for an attorney to defend a board member, a board member would have to spend their personal money to hire an attorney. In addition, if the board member lost the lawsuit and the court decided that the board member owed a certain amount of money. That board member, rather than the insurance company, would have to pay the amount the court decided.