ADJUSTERSINTERNATIONAL.COM 11 Management Liability Regarding its tenants, a landlord or its agent is obligated to meet the terms of a lease agreement and adhere to the laws regulating the operation of rental dwellings. Any obligation a landlord or its agent has to run a rental operation in an economically sound manner is owed strictly to the owners of the structure(s). Any insurance coverage for “wrongful acts” breaching that duty is acquired under a “directors and officers” (D&O) policy, much as with any other commercial enterprise. Things are different in condominium and cooperative communities in that some residents serve as association board members managing the community and its common property in the interest of all residents. In that role they take on a duty to act with care to protect the interest of the community as a whole and its individual members. COVID Impact As indicated at the outset, the COVID-19 pandemic imposed an almost unprecedented degree of Covered under a CGL policy; defense coverage usually “outside limits” and does not deplete amount for damages. “ “ Coverage depends on provisions of condo agreements, circumstances of loss, and provisions of CGL and D&O policies. Covered under a D&O policy; defense coverage typically within limits and thus depletes amount for damages. Claim Bodily injury, including disease, for failing to take reasonable steps to maintain a safe, healthy living environment. Potential Liability Claims by Residents and Source of Coverage for Association Directors Source of Coverage Property damage to individual units and any third-party property. Personal injury (e.g., invasion of privacy) to any resident, guest or third party. Loss of use or value of a unit due to an act or omission of association. Negligent or wrongful act resulting in physical or economic loss to the association. “ Negligent or wrongful act resulting in physical or economic loss to individual unitowner(s). Coverage typically excluded from CGL and D&O policies; separate policies needed. Auto, workers comp, pollution and other liabilities.
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