How Can a Community Association DBS Transfer Risk?
All Rights Reserved © Joel W. Meskin 2019
This article is in regard to developer/builder/sponsor (DBS) controlled boards and the importance of coverage for the Wrongful acts of these DBS appointed board members while they’re on the board in their capacity of board members. It is also imperative at such time when volunteer homeowner members take over control of the association that they determine the best strategy to protect both the appointed board members and the homeowner board members at the time of transition of control. The builder’s board members are excluded from the association’s D&O policies in terms of their roles or authorities as DBS. They are, however, covered in terms of their actions and authorities, activities in regard to association board membership (and acting within their fiduciary duty to the association). However, not all policies cover DBS members in the same way as past homeowner board members once they are no longer on the board. [Read more…] about New and Transitioning Communities Beware: Developer/Builder/Sponsor Protection Under Community Association D&O Insurance