□    Obtain Professional Liability Insurance (errors and omissions insurance)
□    Obtain a Business Owners Policy (BOP)
□    Obtain Commercial General Liability (CGL) Insurance
□    Become (if possible) a named or additional insured on Association’s Directors and Officers Liability Insurance
□    Become named or additional insured on Association’s CGL Insurance
□    Obtain Fidelity Insurance

Management Agreement

 □    Clearly establish the relationship – independent contractor, agent, employee, etc.
□    Clearly define responsibilities and scope of duties
□    Require notice of breach and opportunity to “cure” before Association can terminate
□    Require some from of ADR to resolve dispute
□    Limit time for Association to bring suit for negligence or breach of any duty
□    Require Association to allow manager access to records of Association in event of a claim
□    Clearly define what Manager is not responsible for
□    Terms of Agreement should be consistent with any limitations in Association’s governing documents
□    Clearly define who Manager is to take direction from
□    Provide for at least a yearly evaluation from Board
□    Provide for a mechanism the permits communication directly with Membership if deemed appropriate by Manager
□    Include an indemnification clause with a provision for attorney fees
□    Include a hold harmless provision which includes attorney fees
□    Include a covenant not to sue
□    Include non-waiver and entire Agreement clauses
□    Clafify management company responsibilities upon termination
□    Clarify ownership of records
□    Include a survival clause for warranties, indemnifications, etc.

 Management Practices

 □    Document in writing all disagreements with Association
□    Document in writing all action taken by Association against your advice
□    Maintain complete and detailed log of all telephone calls received
□    Avoid all conflicts of interest and disclose and document those you can’t avoid
□    Encourage Association to get a yearly audit
□    Do not comingle one Association’s funds with another Association’s funds
□    Encourage Association to develop a long-term replacement reserve program
□    Provide timely and accurate financial information to Association
□    Know your limits; know when something is outside your expertise
□    Do not hold yourself out as an expert in areas you are not
□    Do not preform services outside of the scope of the Management Agreement
□    Be familiar with Association’s governing documents and state statutes
□    Obtain more education and training

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