POA board member chargered with harassment for inforceing conenants

It seems your association's insurance should have protected you since you were just doing your director duties. And that you should be reimbursed by D&O insurance.

If you have a copy of your association's insurance policies, and you should have been covered for performing your duties as director, you could sue the association in small claims court to recover what you had to spend to defend yourself, plus your new costs. Or if any of your other governing documents state that directors will be defended by the association for performing their duties, that should suffice. Or if the same thing has happened in the past where the association defended a director for doing his duties, that should also suffice.

I don't think the board has to take an action for you to make a claim, and it certainly doesn't for you to talk to the insurance agent. As a board member, if the association has D&O then you should be a covered party as long as you can show the appropriate appointment. Depending on the policy, if the harassment charges were criminal, it may cover that too - D&O policies often do as long as there's no intent.

You probably needed to make the claim when you learned of the charges, before you incurred the expenses. There's often a reporting requirement.

I am not an insurance or legal expert (or any other kind of expert) - talk to the board's insurance agent and find out what the policy covers.

-- I agree that AndrewS11 should contact the insurer; explain the situation; and see if the insurer will cover the claim. But as NA1 pointed out, the insurer might very well have grounds to decline, due to lack of timeliness yada. The insurer will follow the contract. If there was an obligation to inform the insurer the instant the criminal charges were made, then Andrew may be out of luck.

I think it is likely that the insurer will offer no assistance. If so, all is not lost. I agree that small claims court is something to strongly consider. Here is where I would start my study:

AndrewS11, have you reviewed what the Colorado Nonprofit Corp statute says about indemnification? Because it seems that the statute is very much in your favor. See https://casetext.com/statute/colorado-revised-statutes/title-7-corporations-and-associations/corporations-continued/nonprofit-corporations/article-129-indemnification . See especially 7-129-103, mandatory indemnification.

Next I would be reviewing the Declaration, Articles of Incorporation and Bylaws. If you quote here everything these say about indemnification, this forum might be able to offer more constructive opinions.

Lastly I would be scouring the statute and the Declaration, AoI and Bylaws for what they say about having to pay the HOA in the event it prevails in this proposed small claims suit. If you lose, and depending on what the HOA's governing docs and statutes say, you might be on the hook for the HOA's attorney fees.

Is this a Condominium, subject to the CO Condo statute? Is it a non-condo, subject to CO's HOA statute?

Have you started reviewing what forms have to be filled out for Colorado small claims court?

If you answer the queries above, then I (for one) will likely offer more suggestions.

Yes you need board approval. Why would you not? You can not go spending everyone's money or making a claim on insurance.

I still think more to this story. There is a reason why the board did not get involved. We have one side of the story. If it was false claim then the court would have awarded nothing. Plus charges would be dropped. Where is this part of the narrative?

Just as being in a vehicle accident and might call the insurance company of the other driver, you can contact the Associations insurance company and make a claim against the D&O insurance. Be honest and specify that you are no longer on the board, but was at the time (provide copies of everything - or have them ready).

The agent should contact the current board to see what they say before the insurance company makes any decision.

That said, I would initially write the board, certified mail via the registered agent about covering your charges. Citing the indemnification clause in the governing documents and applicable statutes.

Once you have told them of the requirement to indemnify and once they say, in writing, they refuse - make a claim on the insurance or bring legal action (your attorney can advise you).

May I ask how high is the HOA deductible? Ours is $20K deductible before we can file a claim. So is the damages equal or above the HOA deductible? Otherwise your asking for the entire membership.

By appointment I was referring to a board seat, not the specific assignment vote.

I agree with others, it feels like there is something we don’t know. I am curious about a board in which no one thought to engage insurance. Whenever I hear complaints about how “everyone” is failing to enforce covenants I wonder who is actually wrong.