Legal Question in Real Estate Law in Maine

Re: common area beach question

Unfortunately, the short answer to your question is "yes". If someone gets hurt while using the common area, the association has a liability issue. While I may feel as unhappy on a personal level as the next person regarding the recent rise in insurance premiums, nevertheless, I would not advise any client to "wing it" and skip on liability insurance. At somepoint, I sincerely hope that the free market system regains control and competition returns premium rates to more reasonable levels.

The question does assume certain factors. First, because someone gets hurt does not mean that the association is automatically responsible. The injured party may have been solely or mostly at fault. However, even if this is the case, the association might still have to defend itself against a claim, even if successfully, and there is still a cost associated with winning. This is one important aspect of insurance: the insurance company will provide a defense to claims in addition to payment (in the event the association is liable). Second, although I do not know how your organization is structured, I will assume that the association has the title to the common areas. This means presumably that the association has assets that could satisfy a judgment by an injured party that is not otherwise covered by insurance.

I would be happy to speak with you further if you feel it appropriate, my telephone is 767-4824.