4.5.23 PB Packet - Final - Laserfiche WebLink

Browse Search

125 (b) Public Liability. The Board shall also be required to cause to be obtained and maintained, to the extent obtainable,public liability insurance and officer's and director's liability insurance in such limits as the Board may,from time to time,determine to be customary for projects similar in construction,location and use as the Project,covering each member of the Board,the managing agent, if any, and each Owner with respect to his liability arising out of the ownership, maintenance, or repair of the Common Areas and Maintenance Areas, or from service on the Board;provided,however,in no event shall the amounts of such public liability insurance ever be less than$1,000,000 per occurrence against liability for bodily injury,including death resulting therefrom,and damage to property,including loss of use thereof,occurring upon,in or about,or arising from or relating to, the Property or any portion thereof, nor shall the amount of such officer's and director's insurance be less than$1,000,000 unless such coverage is determined by the Board to be unreasonably expensive. Such insurance shall include endorsements covering cross liability claims of one insured against another, including the liability of the Owners as a group to a single Owner. The Board shall review such limits annually. Until the first meeting of the Board following the initial meeting of the Association Members,such public liability insurance shall be in amounts of not less than$1,000,000 per occurrence for claims for bodily injury and property damage and such officer's and director's liability insurance shall be in amounts not less than$1,000,000. (c) Fidelity Coverage. The Board shall also be required to cause to be obtained and maintained fidelity coverage against dishonest acts on the part of all persons, whether officers, directors, trustees,employees,agents or independent contractors,responsible for handling funds belonging to or administered by the Association. The fidelity insurance policy shall be written in an amount sufficient to provide protection which is in no event less than one and one-half times the Association's estimated annual operating expenses and reserves. An appropriate endorsement to the policy to cover any persons who serve without compensation shall be added if the policy would not otherwise cover volunteers. (d) Other. Such other insurance coverages, including flood insurance and worker's compensation,as the Board shall determine from time to time desirable. Section 2. Premium Expense . Premiums upon insurance policies purchased by the Board shall be paid by the Board and charged as a common expense to be collected from the Owners pursuant to the terms of this Declaration. Section 3. Special Endorsements . The Board shall make diligent efforts to secure insurance policies that will provide for the following: (a) recognition of any insurance trust agreement entered into by the Association; (b) coverage that may not be cancelled or substantially modified(including cancellation for nonpayment of premium)without at least thirty(30)days'prior written notice to the named insured and any insurance trustee;and 32