Last week I had the privilege of attending the CAI Community of Association Lawyers’ Law Seminar. In a session discussing Employment Practice Liability Insurance for association’s that have employees, the panelists, Cliff Treese, Kevin Davis and Heather Appleton, explained that the current D&O causes of loss across the country are broken down in the following categories:
As you can see the two biggest categories were board members are sued relate to breach of fiduciary duty and violation of association’s governing documents. In order to avoid claims at all, board members are served well by understanding their fiduciary duty and knowing and following their association’s governing documents. Board members can learn more about fiduciary duties at our February 21st class.