If you manage or are a board member of an HOA with employees, consider reviewing the HOA’s insurance policies to make sure you and the HOA are covered should an employee ever sue or make a claim. Many insurance policies HOAs carry do not cover employment-related claims. HOAs who employ at least 15 employees are vulnerable to discrimination claims, and an HOA need employ only 1 employee to be subject to a sexual harassment or wage and hour claim.
Employment Practices Liability Insurance (EPLI) covers these and other types of employment related claims. If an employee (or ex-employee) makes such a claim or sues, EPLI may pay for the costs of defending the HOA, manager, and/or board members. EPLI may also help pay to settle claims or lawsuits.
Of course, like HOAs and the communities they serve, every insurance policy is different. We encourage HOAs with employees to work with us, their broker and their insurance carriers to address whether EPLI should be part of the HOA’s overall insurance package.
The information contained in this HOA Tip is for informational purposes only and is not specific legal advice or a substitute for specific legal counsel. Readers should not act upon this information without seeking professional counsel.
