Monday, June 1, 2015

The Top 10 Association Insurance Questions - Part 5

Today marks the half way point of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance." 

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 5:
What is Hired Non-Owned Auto and why do I need it?   

Answer:
“Our association does not have any autos so why do we need this coverage?” is the question I get asked at least once a week. The question is not a bad one since the associations usually don’t have any owned autos. The term “vicarious liability” is why you need and want this coverage.

For example, if you have a board member that has an offsite meeting with a vendor, contractor, etc. and on the way to the meeting has a major accident that was deemed to be their fault they will get asked the details of their trip. When they mention doing work for the association we often see the association get named in the lawsuit as well. Without some form of auto liability coverage the association could be left bare and have to defend and pay this claim on their own. Insurance companies recognize this is a limited exposure for associations and the premium represents that.   


Be sure to check in next week for the next question and answer!