Glossary of Terms: directors and officers (D&O) insurance

the insurance for individual liability of directors and officers of the association for negligent acts or ommissions in their capacity

The association is required to maintain insurance that includes coverage for:

1. General liability of the association
2. Individual liablity of directors and officers (D&O insurance) of the association for negligent acts or ommissions in that capacity

The minimum directors and officers insurance required is:

1. At least $500,000 for developements with 100 or fewer units
2. At least $1 million for developments with more than 100 units

The minimum general liability insurance required to protect the individual owners through the association's coverage is:

1. At least $2 million for developements with 100 or fewer units
2. At least $3 million for developments with more than 100 units

CA Civ. Code § 5800

CA Civ. Code § 5805

Read our article Understanding Your HOA's Master Insurance Policy