HOA Insurance Rates & Legal "Threats"

Can a HOA's insurance rates go up specifically in consequence of "threats" (of a variety of flavors over different issues) of legal action are made? E.g. (a) a member hires an attorney to write the HOA a letter (asking for clarification), without a threat of legal action; (b) a member writes a letter of demand but the HOA ultimately gives the member what is demanded, and there is no further demand made; (c) a member posts on his Facebook page an open letter to the board, stating he 'is optimistic court can be avoided in this matter...'

Rates going up can be effected by many factors. However, like Tim says "threats" aren't one of them. Claims are. Now it may depend on how your HOA is handling said "threats". If they are going straight to their insurance carrier with questions.

The insurance company will be the one ultimately paying out. Which risks your HOA for higher insurance rates or full out cancellation. If your HOA is calling the insurance company on things like "If we allow non-members to swim in our pool and they have an accident...". Kind of raises red flags on liability issues. They may be like "We don't cover that, if you want that covered you have to sign up for xxx option or package".

I don't go running for the lawyer for every threat received. Spending more money in prevention and fear than actual damages is a problem. Until I see an actual document from the court stating lawsuit, then don't see a need to panic. Even if a lawyer drafts the HOA a letter. Review it and then look at the worse case scenario. Is it worth knee jerk reacting or running the legal/insurance bill up?

Thank you, Tim, Melissa, and Janet. I see talk on the net distinguishing between "potential claims" and "actual claims." For example, https://www.davis-stirling.com/Main-Index/Tendering-Claims . One of the directors at my HOA has been insisting to members that even a threat (subtle or otherwise) of legal action will result in increased premiums. I now think she's wrong.