According to kdisonline.com, many managers erroneously think that if their management agreement contains “hold harmless” language, then they are safe from Errors & Omissions liabilities. Unfortunately, this can be a false sense of security, and you cannot always count on your association’s indemnity clause to help you with Errors & Omissions, also known as E&O, matters. E&O coverage, therefore, can be a valuable part of your community association’s insurance package.
E&O insurance can also be referred to as professional indemnity insurance. An E&O claim can arise when a mistake causes financial harm to another party. Considering the high likelihood that a mistake will happen, it may be a good idea to purchase an E&O policy for your community association. Mistakes are an unavoidable part of life, and therefore, numerous professionals from many fields choose to operate under an E&O policy. Some professions even require proof of E&O insurance. An E&O policy may provide coverage for wrongful acts worldwide, for spouses with a spousal extension and for Full Prior Acts.
If your community association is looking for a dedicated E&O insurance policy, you can find a downloadable application online at kdisonline.com. An E&O policy can provide you with peace of mind in the event of a mistake at your community association.