Definition
Insurance that protects HOA board members personally from claims arising out of their decisions and service on the board.
Directors and officers (D&O) insurance protects volunteer board members from personal liability for claims tied to their board service — for example, a disputed enforcement action, an election challenge, or an allegation of mismanagement.
Without adequate D&O coverage, a director can be personally exposed, which also makes it harder to recruit volunteers. Every association should confirm it carries sufficient D&O coverage and review it annually. Note that D&O typically covers good-faith decisions, not fraud or intentional wrongdoing.