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103 <br /> (b) Public Liability. The Board shall also be required to cause to be obtained and maintained, <br /> to the extent obtainable, public liability insurance and officer's and director's liability insurance <br /> in such limits as the Board may, from time to time, determine to be customary for projects similar <br /> in construction, location and use as the Project, covering each member of the Board,the managing <br /> agent, if any, and each Owner with respect to his liability arising out of the ownership, <br /> maintenance, or repair of the Common Areas and Maintenance Areas, or from service on the <br /> Board; provided, however, in no event shall the amounts of such public liability insurance ever be <br /> less than $1,000,000 per occurrence against liability for bodily injury, including death resulting <br /> therefrom, and damage to property, including loss of use thereof, occurring upon, in or about, or <br /> arising from or relating to, the Property or any portion thereof, nor shall the amount of such <br /> officer's and director's insurance be less than $1,000,000 unless such coverage is determined by <br /> the Board to be unreasonably expensive. Such insurance shall include endorsements covering <br /> cross liability claims of one insured against another, including the liability of the Owners as a <br /> group to a single Owner. The Board shall review such limits annually. Until the first meeting of <br /> the Board following the initial meeting of the Association Members,such public liability insurance <br /> shall be in amounts of not less than $1,000,000 per occurrence for claims for bodily injury and <br /> property damage and such officer's and director's liability insurance shall be in amounts not less <br /> than$1,000,000. <br /> (c) Fideli . Coverage. The Board shall also be required to cause to be obtained and maintained <br /> fidelity coverage against dishonest acts on the part of all persons, whether officers, directors, <br /> trustees, employees, agents or independent contractors, responsible for handling funds belonging <br /> to or administered by the Association. The fidelity insurance policy shall be written in an amount <br /> sufficient to provide protection which is in no event less than one and one-half times the <br /> Association's estimated annual operating expenses and reserves. An appropriate endorsement to <br /> the policy to cover any persons who serve without compensation shall be added if the policy would <br /> not otherwise cover volunteers. <br /> (d) Other. Such other insurance coverages, including flood insurance and worker's <br /> compensation, as the Board shall determine from time to time desirable. <br /> Section 2. Premium Expense <br /> . Premiums upon insurance policies purchased by the Board shall be paid by the Board and charged <br /> as a common expense to be collected from the Owners pursuant to the terms of this Declaration. <br /> Section 3. Special Endorsements <br /> . The Board shall make diligent efforts to secure insurance policies that will provide for the <br /> following: <br /> (a) recognition of any insurance trust agreement entered into by the Association; <br /> (b) coverage that may not be cancelled or substantially modified (including cancellation for <br /> nonpayment of premium)without at least thirty(3 0)days'prior written notice to the named insured <br /> and any insurance trustee; and <br /> 32 <br />