Legal Question in Insurance Law in Texas

Officers & Directors Insurance

Self appointed officers of our local neighbourhood association (where memebreship is voluntary) are requesting an increase in fees to cover the cost of ''officers and directors insurance''. As I would ordinarily associate this insurance with protection against individuals actions in a company or corporation I am somewhat puzzzled by the request. Do you believe that this type of insurance policy and request is appropriate in a neighbourhood association with limited assets? If you do believe it is appropriate, can you explain the perceived risks being guarded? Thank you.


Asked on 9/25/08, 12:21 pm

2 Answers from Attorneys
Donald McLeaish McLeaish&Associates;, P.C.

Re: Officers & Directors Insurance

from lawsuits for perceived malfeasance..and avoid having to pay attorney fees..I for one would not serve on such boards without such protection

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Answered on 9/25/08, 2:34 pm
Donald McLeaish McLeaish&Associates;, P.C.

Re: Officers & Directors Insurance

Another thought...the mere idea that elected officers are "self appointed" supports the need for directors insurance..

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Answered on 9/25/08, 2:44 pm


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