Blog

Workers’ Compensation insurance, sometimes referred to as Workers Comp, is the type of policy most commonly purchased by condo associations that is not required in the Illinois Condominium Property Act. Workers Comp insurance is a type of insurance purchased by employers for the coverage of employment-related injuries and illnesses. Workers Comp is state mandated in Illinois for any employer with “W2’d” employees. If your association directly employs one or more persons, and issues them a W2, you are required to pay for workers compensation insurance. Most condominium associations do not employ traditional employees, but workers comp can still be a smart...

In many ways this is the most complex type of insurance policy that a condo association in Illinois is required to maintain. Directors and Officers insurance (D&O) protects board members from damages resulting from allegations of wrongful conduct and lawsuits. It provides legal defense coverage as well as indemnification of damages, up to the policy limits. Unfortunately, board members may make mistakes. Without Directors and Officers insurance, a mistake could be disastrous.  Board members have certain fiduciary duties and fiscal responsibilities when serving in their respective capacity for the Association. They have an obligation not to violate or breach these fiduciary...

This article provides an overview of the types of insurance that an Association should and must maintain. The Board of Directors is responsible for ensuring that the legal and reasonable levels of insurance coverages are in place at all times to protect the members of the Association. This is a great responsibility and should not be taken lightly. A Warning of Importance As I instruct my staff on a regular basis, in the governance of an Association there is nothing that carries a higher risk of legal liability than matters of insurance. The potential cost associated with errors in this area...