Common Insurance-Related Mistakes Boards Make ...and how to avoid them!

What are some commonly-made insurance mistakes boards should avoid?
Insurance may not be the most exciting topic facing boards in multifamily co-ops and condos, but decision-makers neglect it at their peril. Here, an insurance pro outlines some of the more common mistakes he sees boards make when it comes to their coverage, and gives advice on how to avoid them. 

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  • The above advice is well-described and hugely important. A question: if unit owner insurance policies are supposed to be approved by a Co-op board, what assurances are there that the individual Board members have the necessary technical background in this area to assess each policy? As a practical matter, wouldn't unit owner insurance policy approvals be best delegated to the Management company?
  • My experience is that most managing agents in New York do not necessarily have the expertise to properly vet general liability or D&O policies. I believe the better practice is for condo and coop boards to have their general counsel, broker or someone else with insurance law experience review the policies. Most boards do not review their shareholder or unit owner policies but they should.