Association Insurance Products & Services

Insurance Coverages for Community Associations

When MMA writes a new policy for a Community Association, many times there are significant coverage gaps that need to be addressed. Two types of coverage that are most often overlooked are volunteer accident coverage and workers' compensation coverage. If your association is does not have these coverages in place, you can be held liable for accidents that may happen.

We specialize in townhome and condominium associations insurance and we’ve been doing this a long time — our dedicated service team has an average of 30 years experience in the industry. We research your association’s needs to identify your unique risks and then create a comprehensive risk prevention solution that protects your association, board and unit owners. We can even attend board meetings, meet with developers and help design and implement communication strategies to keep your unit owners informed.

Below is an outline of the most common types of insurance coverages associations need to have in place.

Types of Coverage

Property & General Liability Insurance

Property Insurance
Property insurance coverage is intended to cover the residential structures, monuments, fencing, community buildings that are part of an association. This line of coverage is usually grouped with the general liability and hired non-owned auto coverage. All three lines of coverage are part of a package policy. Association governing documents usually require this coverage and dictate to what extend the buildings need to be insured.

General Liability Insurance
General liability provides coverage for legal claims arising from bodily injury, property damage, personal injury and advertising injury. General liability coverage is also part of the package policy. Association documents require this coverage and may dictate a minimum limit of coverage.

Hired Non-Owned Liability Insurance

Hired non-owned liability insurance is intended to cover the association's exposure in situations when a volunteer, who is driving their own car, is in a car accident while out on association business. This insurance is excess over any auto coverage the driver has at the time of the accident. This coverage is not for vehicles that the associations owns. This line of coverage is usually grouped with the package policy as well.

Umbrella Liability Insurance

The purpose umbrella liability insurance is to offer additional liability coverage for associations. The policy is triggered when the underlying coverages have been exhausted. The underlying policies are typically the general liability, Hired non-owned auto and directors and officers (D&O) liability.

Crime & Fidelity Insurance

Crime and Fidelity insurance is intended to protect the monies the association has in operating and reserve accounts. Association documents often require this type of coverage.

Directors & Officers Insurance

The intention of directors & officers insurance is to protect the association from wrongful acts by the association, the Board of Directors, the Officers and certain other volunteers. Association documents require this coverage.

Volunteer Accident & Workers' Compensation Insurance

Volunteer Accident Insurance
Volunteer policies are designed to bridge the possible gap in Association policies. Volunteers are not covered under workers' compensation policies and depending on the situation there may be limited coverage on the General Liability policy. Volunteer policies vary in cost and coverages. Premiums are generated based on the number of volunteers, the volunteer activities performed and the coverages and limits desired. Available coverages include medical and dental, accidental death and dismemberment, sickness, catastrophic injury and temporary disability.

Workers' Compensation Insurance
Workers' Compensation policies are designed to protect the association when hiring a contractor who does hold the workers' compensation coverage but defaults on their insurance premium. If this person hurts themselves while working at the association, the association could become responsible for the injuries. The association can protect itself against such situations, by purchasing a minimum premium workers’ compensation policy. The annual premium for workers' compensation coverage is minimal and a refund close to 50% can be obtained at the end of the policy year by completing an audit form provided by the insurance company.