Residents’ Associations Insurance
A residents’ association (RA) shoulders not only the well-being of a community but also many of its inherent risks. Because each association differs in purpose and objectives (some may represent general members’ interests, others may only respond to specific issues such as neighbourhood crime), it is imperative to understand the details of your association’s cover and shape it to meet your association’s needs.
Often, members of an Residents’ Association are at risk whether they know it or not. Mind the gaps in your association’s cover so you and your fellow members are not making costly payments when the unexpected happens.
Residents’ Association Insurance Basics
All Residents’ Associations should possess general property and liability insurance, but these policies cannot provide you with comprehensive protection. The more you consider an Residents’ Association’s policy, the more complicated it becomes—how much cover does the insurance actually supply? Are the association’s motor vehicles covered? What about any employees and officers?
Property, money flow, workers, officers—a robust Residents’ Association requires much of the same insurance as a regular business. Everything from vehicle operation to officer conduct can be a source of liability. You should quickly find and plug the gaps in your association’s cover.
Filling Cover Gaps for Residents’ Associations
In order to identify where your Residents’ Association is most vulnerable, think about every action and function your Residents’ Association takes and fulfils; nearly all of these interactions can be a source of liability for the community. Consider the following common types of RA cover:
- Directors’ and officers’ liability covers an Residents’ Association if it is sued for misappropriated funds or officer negligence. That way all the members of an Residents’ Association will not be held responsible for the actions of one officer. It typically provides legal representation, but excludes cover in the event of proven fraud or illegal profit.
- Employers’ liability is mandatory if an Residents’ Association has any employees. It indemnifies employers against costs associated with disease or bodily injury that employees suffer on-site.
- Public liability applies to common or shared areas. It will protect your group if an outside party is injured. Your RA may need a bespoke public liability policy depending on whether it represents a group of houses in a community or a block of flats. For example, an RA with members exclusively from a block of flats should consider insuring its common areas, such as the foyer.
- Employee dishonesty protects the community from several kinds of theft and fraud perpetrated by its officers or employees. Even though you may be a well-intentioned member, all it takes is one unscrupulous employee to ruin it for everyone else. Employee dishonesty cover helps mitigate this risk.
- Additional covers can include libel or slander, legal expenses, errors and omissions, personal accident, contents, money and more. Whether or not your community’s Residents’ Association operates as a business, it probably still holds assets that would necessitate contents or money policies. Most Residents’ Associations require members to pay membership fees to help pay for meeting expenses, publicity, refreshments and various initiatives. Residents’ Associations should work to safeguard the equipment and money they possess.
How Business Insurance Service can help
The variety and depth of Residents’ Associations cover can be daunting and difficult to navigate. A broker who understands your community is crucial to getting complete cover. Together, we can determine the insurance your association needs to protect the assets of your living community.
We’re members of the British Insurance Brokers Association (BIBA) and work with some of the largest and best-known insurance providers in the UK, including Lloyds of London for larger, more complex and high-risk customers. We’re fully regulated and committed to delivering a premium quality, trustworthy and reliable service to all our customers, regardless of size.