Why boards need it
Condo boards make decisions every month that can end in a dispute: enforcing a bylaw, cancelling a contract, chasing an owner for a chargeback. The corporation's property and liability policy pays when the corporation is liable for damage or injury. It does not pay the board's lawyer to recover money or defend a governance decision. Without legal expense cover, those fees come out of the operating budget or the reserve fund.
What the policy covers
- Legal advice service. 24/7 access to qualified lawyers on any legal matter, covered or not.
- Disputes with owners. Defence of claims by owners, including bylaw enforcement disputes.
- Contract disputes. Disputes with contractors and suppliers.
- Debt recovery. Recovering amounts owed to the corporation.
- Property disputes. Trespass, nuisance and damage to the property.
- Civil and criminal defence. Including criminal allegations against board members arising from their duties.
- Personal injury. Pursuing a third party after a board member is injured on corporation business.
Limits are $200,000 per claim and $1,000,000 in the annual aggregate, with a $500 excess on each claim. No excess applies to the legal advice service.
How claims look in practice
| Situation | What the policy does |
|---|---|
| Water from a blocked drain damages units. The board pays a $5,000 deductible and the responsible owner refuses to reimburse it. | The legal team issues a demand letter and recovers the amount. |
| A landscaping contractor misses service standards and sues for cancellation penalties after the board ends the contract. | The policy defends the board and challenges the claim. |
| A resident sues over how the board enforced the noise bylaw. | The policy funds the defence and the negotiated settlement process. |
| A board member faces a theft allegation after a routine inspection. | A lawyer is assigned to defend the board member. |
Scenarios are examples only. Coverage is subject to the policy terms, conditions and exclusions.
Who it fits
- Condominium corporations of any size.
- Co-op housing boards.
- Property managers who place insurance for the boards they manage.
- New boards taking over from a developer.
Panel lawyers, not a blank cheque
The policy uses experienced condo lawyers from its panel, which keeps representation efficient and costs controlled. Talk to an underwriter before inception if the board has a lawyer it wants to keep for an ongoing matter.
