Insurance Needs?

Similar to legal questions, I think insurance-related questions are best directed toward insurance professionals. Also, I would expect your management company to be another good resource specifically because they have more experience in HOA-needs and know the specific situation of your HOA a bit better (hopefully).

I also thing Google is a good resource and provides even more simple info/input.

Some people seem to think that pinching pennies when it comes to insurance is the way to go . . . because in most cases you hopefully never need to use it. However, I think more coverage is better, especially when it only boils down to a few dollars more each year for every homeowner. It's better to pay a bit more to have policies in place when you need them than to need them and not have the policies in place because you wanted to save a few bucks.

That said, I know some of this repeats what you said, but the following coverage is recommended as a starting point (some may not be applicable to your situation though).

General Liability Property Insurance
Regular Liability Insurance
D & O Coverage
Social Host Liability Coverage
Garagekeeper’s Coverage
Workers’ Compensation and Employee Dishonesty Bonds
Discrimination Claims Coverage

I wouldn't suggest skipping that one even if no direct employees/volunteers of HOA.

Certain hired contractors contractors or freelancers could potentially claim employee status depending on the scope of the job they perform and if they are a regular worker on association grounds. Further, even though there are steps to verify insurance beforehand . . . in the unlikely event that the Board forgets to verify, doesn't verify sufficiently (perhaps coverage exists but is inadequate), insurance is lost/ends before the job begins, personnel not covered by the policy are the ones who do the work, or any number of other potential scenarios where workers comp is needed . . . it's best for the HOA to have their own policy in place as well.

Are you saying that providing insurance for the possibility that one's corporation; one's self; or one's fellow HOA director is unlawful in some states?

If you can name a state and cite something specific as evidence of this, then I would be interested in seeing it.

I believe discrimination claims generally fall under the category of wrongs known as torts. I believe insurance companies typically offer 'tort liability coverage.'

Aug

I am in over my head on this subject so I attached the following link. Hope it helps.

https://www.thebalancesmb.com/general-liability-coverage-and-discrimination-462364#:~:text=Discrimination%20Coverage%20Under%20Umbrella%20Policies%20Some%20commercial%20umbrella,state%20laws%20prohibit%20insurance%20that%20covers%20discriminatory%20acts.

On further study, I think the topic to which the above statements are referring is that many (most?) states prohibit insurance covering 'intentionally bad acts.' I believe an allegation of discrimination on the basis of race, sex, religion et cetera in the HOA workplace or in housing may or may not qualify ultimately being judged as an 'intentionally bad act.' The net has much discussion like the following:

=== Start excerpt ===
"Intentionally bad acts are not covered by insurance. Most states have statutory or common law prohibitions against insuring acts undertaken intentionally, with the intent to cause harm. Society simply does not permit a gross wrongdoer to profit by shifting financial responsibility for inherently bad acts to an insurance company. That is why Commercial General Liability ("CGL") policy forms exclude losses that are "expected or intended from the standpoint of the insured" and why errors and omissions, employment practices, and directors' and officers' liability policies have provisions excluding proven dishonest or fraudulent conduct. These inherently culpable acts do not qualify to be insured, and therefore are referred to as uninsurable.

But sometimes CGL policies do allow alleged bad actors to shift to insurers the expense of defending them -- and even the expense of paying settlements or judgments. The difference between uninsurable intentional conduct and insurable intentional conduct can be hard to identify and anticipate, creating a gap into which some losses can – unforeseeably – fall."
=== End excerpt ===

One may google on {"intentional act" "insurance"} and find both high-minded and practical discussion.

I do not think any state flat-out bans insurance coverage for acts alleged to be discriminatory against the several protected classes.

In New Jersey corporations are required to have workman's comp insurance even if you don't have employees.