HOA glossaryInsurance & operations

What is D&O insurance?

Insurance covering directors and officers against claims arising from their decisions in governing the association.

Also called: Directors and officers liability

D&O responds to allegations of wrongful acts in the management of the association — enforcement disputes, election challenges, discrimination claims, breach of fiduciary duty. Without it, a director's exposure to defence costs is personal, and volunteers become hard to recruit.

Coverage varies considerably. Points worth confirming include whether non-monetary claims and defence for injunctive relief are covered, whether volunteers and committee members are insured, whether prior acts are covered, and what the exclusions do to discrimination and enforcement claims specifically.

Indemnification in the bylaws and D&O coverage are complementary rather than duplicative — one is a promise from an entity that may lack funds, the other is a policy that pays.

Why it matters to a board

Read the exclusions with a broker who insures associations specifically. Generic nonprofit D&O often excludes exactly what an HOA gets sued for.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

Related terms

Fiduciary dutyThe obligation a director owes the association to act loyally, in good faith, and with the care a prudent person would use.Board of directorsThe elected body that governs the association, holding all authority the governing documents grant to it and no more.Master policyThe association's property and liability insurance covering the common area and, in many condominiums, the buildings themselves.Fidelity bondCoverage protecting association funds against theft by directors, employees, or the management company handling them.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
Cure period Declarant All 65 terms

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