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Condo Association Insurance Policy Information

Condo Association Insurance

Condo Association Insurance. If you are a part of a condominium association or you own a part of a condo, then you know how important it is to have insurance. A condo is a building that contains a number of individually owned apartments or houses. Although each person owns a part, there are parts of the condo that are shared.

Just as a typical home, many risks come with owning a condominium. This is why it's important to get condo association insurance to protect your property.

Condo association insurance protects your property from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

How Much Does Condo Association Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small condo associations ranges from $37 to $49 per month based on location, number of units, amenities offered and more.

Condo Association Insurance Basics

A condominium owners' association is created to help with management of the building. Whatever the size of the property this association is required to assist in the administration of the expenses, repairs and ensuring that the buildings are secured with insurance.

These types of associations create rules that help to govern the operation of the buildings. The condo association insurance master policy outlines which parts of the property the association has insured and which parts the different persons who own units must get insurance to protect.

Condo Association Property Coverage

An association master policy provides protection for the different parts of the condo such as hallways, sidewalks, elevators, roofs and basements of the condo building. As a unit owner, you are responsible for protecting your part of the condo.

With condo association insurance you are provided with three types of building coverage, and they include:

  • Single entity coverage: This coverage helps to protect the basics elements of the building. It also covers standard finishes inside each of the units. However, it does not cover the personal property of the unit owner. To protect your personal property, you'll have to get separate insurance.
  • Bare walls coverage: With this condo association insurance coverage, you also cover the essential building elements. This insurance also provides coverage for parts of the building such as walls, roof, floors, and elevators. As a unit owner, you'll have to get separate insurance for items such as bathrooms and kitchen fixtures, flooring, countertops and the other parts of your condo.
  • Modified single entity coverage: Also known as all-in coverage covers improvements made to your condo. It includes fixtures, installations and any improvements you make to inside your of the condo.

Condo Association Liability Coverage

Your condo association insurance should cover lawsuits. Something as simple as a slip or fall could result in a devastating loss from a lawsuit. If the property has a pool, hot tub or other shared places, then the chances of bodily injury are even higher, which requires you to have the right condo association insurance. Following are some of the most common coverages for condominium associations:

General Liability Insurance: With this type of condo association insurance, you can get broad coverage for any accident that can happen on your complex. If someone comes to your condo and they slip and get injured the association can be sued for any damages.

Crime and Fidelity Coverage: If there is theft of association funds or another type of financial theft then having this insurance provides you with the necessary protection.

Equipment Breakdown Coverage: This type if insurance covers any costs associated with the breakdown of machinery. When machinery breaks down, you stand the chance of losing income. By having this type of insurance, you can keep your business running.

Directors and Officers Liability Insurance: With this condo association insurance protection, the directors of the condo association are covered against lawsuits. A director's performance on the board could result in a lawsuit. As a director, you are responsible for making important decisions which you can be held liable for.

Hurricane of Flood Insurance : Hurricane and flood insurance gives you the protection you need in the event a storm hits your condo. The damage caused by floods or hurricanes are usually not a part of your association master policy. This means you will have to get this coverage separately.

Condominium Association's Risks & Exposures

Premises liability exposure comes from use of the communal areas as the association is responsible for all maintenance and upkeep. All buildings should meet life safety codes regarding smoke and fire detection, fire extinguishers, and carbon monoxide detectors. To prevent slips and falls, all premises must be well maintained.

There should be no frayed or worn spots on carpet, and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Balconies should be regularly inspected and maintained.

Swimming pools, exercise facilities, and playgrounds should be limited to members and their guests and properly maintained. There should be a maintenance activity log to document the association's response to unit owners' needs. Personal injury losses may occur due to alleged discrimination or invasion of privacy.

Directors and officers exposure is from actions and decisions made by the elected officers of the condominium association. The exposure can be minimal when all responsibilities are shifted to an outside management firm. If the condo association operates without outside assistance, the condo association and its individual officers can be held liable for adverse actions such as discriminatory practices, failing to maintain the property in a responsible manner, or mismanagement of shared escrow funds. Policies and procedures should be published and consistently followed.

Workers compensation exposure is nonexistent if the condo association contracts all services to an outside management firm. If there are employees, office workers may develop repetitive motion injuries such as carpal tunnel syndrome. Maintenance workers can experience cuts, burns, back sprains from lifting, and exposure to machinery used for lawn maintenance and other repairs.

Skin and lung irritations can result from working with cleaning chemicals and paint. Animals owned by unit owners can bite or kick workers. Any contract with outside firms must specify who is responsible for providing workers compensation coverage to the workers. If the subcontracting firm is responsible, the condominium condo association should obtain certificates of insurance to verify that coverage.

Property exposure consists of the buildings, grounds, swimming pools, parking areas, and other property jointly owned by the condo association's members. The bylaws of the association will specify what is owned by the association and how it must be insured. Ignition sources include electrical wiring, heating and air conditioning systems, and cooking equipment within residential units. There should be hard-wired smoke or fire alarms in all units and common areas. Personal property is limited to the office and furnishings in the community building.

Crime exposure comes from employee dishonesty in the handling of the escrowed funds to be used for maintenance and repair. Employee dishonesty is controlled through background screening, disciplined controls, and division of duties.

Inland marine exposure comes from accounts receivable for condominium association fees and assessments due, computers, and valuable papers and records for association and owners' information. Duplicates of all records should be made and kept off premises for easy replication in the event of a loss. Lawn equipment may be considered contractors' equipment, but is usually included as building property.

Business auto exposure is generally limited to hired and non-owned for employees running errands. If a maintenance vehicle is owned by the condominium association, all drivers must have licenses appropriate for the vehicles driven and acceptable MVRs. All vehicles must be maintained with records kept in a central location.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 8641 Civic, Social, and Fraternal Associations, 6531 Real Estate Agents and Managers
  • NAICS CODE: 813990 Other Similar Organizations (except Business, Professional, Labor, and Political Organizations)
  • Suggested ISO General Liability Code(s): 62000, 62001, 62002, 62003, 68500
  • Suggested Workers Compensation Code(s): 9012, 9015

Condo Association Insurance

As an owner of a condo unit, it's important that you find the right protection. With association master policy some things are covered in the condominium building. You, on the other hand, may need to get additional insurance for your part of the condominium. When you get insurance for your condo, you are protecting your investment.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Commercial Property Insurance

Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.


Commercial Real Estate Insurance

Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.

Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.

The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.

The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.

This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.

There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.

These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.


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