O&E insurance waiver?

If by O&E you mean D&O (Directors' and Officers') insurance, it's not a good idea to go without it.

D&O insurance protects your board directors and your officers from personal liability in the event the association is sued. Without it, your directors and officers can be personally liable for paying for their own defense and for their share of any judgement if the association and your directors and officers are sued. Also, your bylaws should have a provision that indemnifies your directors and officers in the event of a lawsuit which means that the association (your homeowners) could be responsible for any costs. That can get expensive.

My guess is that by a waiver it means each officer and each director must sign an agreement to be personally responsible for paying for their own defense and for any judgement arising out of a lawsuit.

I would not be willing to serve as a director or an officer if the association didn't have D&O insurance.

Maybe it is D&O and I don't know the correct name.
This is what our CC&R's says:
Insurance
2) Obtain and maintain A comprehensive general liability policy insuring the Association against any liability incident to the ownership or use of the common area or any other Association owned or maintained real or personal property, with minimum limits of at least two Million.................... WE HAVE THIS

4) Fidelity bonds or insurance covering officers, directors, and employees that have access to any Association Funds........ WE HAVE THIS
AND, It also states if there isn't enough funds and the insurance becomes too costly The Board could allow it to lapse with notices to all. THIS IS UNLIKELY
And, It also states each owner shall maintain their own policy with a waiver of subrogtion by the carrier to the other owners, etc.
And, It also states...
Any insurance maintained by the Association shall contain "waiver of subrogation" as to the Association and its officers, directors, and members, the owners and occupants of the lots .............. if obtainable, a cross-liability or severability of interest endorsement insuring each insured against liability to each other insured.

We have been told that many small HOAs like ours that do not have the funds can sign a waiver to each other since we are already paying for the liability above and do not have anything to maintain like a pool or rec room.
Since there are virtually no common areas to speak of, I would think these rules above would apply especially if each owner has their own insurance.
Thanks for your comments.

Well, the correct name is very important when you're talking about dropping coverage. If you did not have D&O insurance, only a fool would serve on your board or officers positions, and I don't think you want idiots running your HOA.



Because the association's insurance policy, shall include a subrogation waiver, the insurance company cannot seek reimbursement of amounts paid under the policy from the unit owner or tenant who caused the damage covered by the policy.

The association may bill the unit owner or tenant for any uninsured loss or covered expenses not paid by the insurer because of a deductible. The unit owner commonly submits these charges to his own insurance carrier for coverage consideration.

In the absence of subrogation, the association might be able to sue the unit owner or tenant directly for damage done to the common areas.



Virtually no common areas? You either have the common area's or you don't. It's one or the other. Each owner likely does have their own insurance, but it doesn't cover the same thing as the HOA insurance at all. Example: If I buy dental insurance, it doesn't cover my house burning down. Each insurance covers something specific.