Reducing Risks Limiting Liability in Order to Reduce Costs

For co-ops, condos, and HOAs, insurance premiums are some of those quiet necessities that tend to fly under the budgetary radar until it is time to examine the bottom line, provoking a search for savings.

Without a doubt, insurance expenses can be significant. Fortunately, examining risk and liability can bring those costs down…and keep them down. Certainly, this process requires a time commitment from board members, managers, residents, and insurers; in the end, however, reducing risk not only saves on premiums, but helps to make the community a safer, more efficient place to live, as well.

Taking Those First Steps

Often—too often, in fact—issues of liability and risk are examined only after problems have occurred. Usually, insurance holders address matters “because something bad has happened,” says Robert M. Prince, a partner at the law firm of Chatt & Prince P.C., based in Hinsdale, Illinois. “Someone has been hurt or a lawsuit filed…it’s more reactive in nature. Other times, a new case or law comes out and that prompts boards and managers to look at how they’re doing things,” he says.

Though, these days, “Associations are doing more with less money,” says Prince. “They want to pay less to insurers or attorneys, and they’re being more proactive about costs.”

Thankfully, a number of options exist to reduce risks that elevate insurance costs. One of the first steps to take in making these assessments is to talk to the insurance agent, says Michael Conte of Ron Tepperman Inc., an insurance company based in New York City.


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  • I am the board president in a coop of 108 units. We have an outdoor pool that is In service for two months and a half during the summer. we are located in Westchester County New York. what are the requirements for insurance ? Are we bound by law to hire a pool company and use their certified life guards or can we not use the pool company and hire certified life guards on our own. What would the impact on our liability insurance be? And is it worth the savings NOT go with a pool company???