Directors and Officers liability insurance protecting board members from personal liability for governance decisions.
Directors and Officers (D&O) insurance is a specialized liability policy that protects HOA board members and officers from personal financial liability arising from alleged wrongful acts in their governance roles — decisions made in good faith that are later challenged by homeowners, vendors, or other parties. D&O coverage typically covers legal defense costs, settlements, and judgments. It does not cover intentional fraud, criminal acts, or self-dealing. Most HOAs are strongly advised to carry D&O insurance because individual board members can face personal lawsuits even when acting in their capacity as volunteers. Without it, a board member's personal assets could be at risk in a lawsuit against the HOA.
D&O insurance is one of the most important factors in recruiting and retaining capable board volunteers. Without it, few homeowners will agree to serve on the board.
Master Policy
The HOA's primary insurance policy covering the building structure and common areas.
Fidelity Bond
Insurance protecting the HOA against financial loss from employee or officer theft or fraud.
Board of Directors
The elected governing body responsible for managing the HOA on behalf of all homeowners.
LotWize handles d&o insurance tracking automatically — along with violations, ARC requests, meeting minutes, and homeowner communications, all in one platform built for self-managed HOAs.
Start 14-Day Free TrialThis page provides general information only — not legal or financial advice. HOA laws vary by state and community. Always consult your governing documents and an HOA attorney for guidance specific to your situation.