Preparing D&O Submissions for Associations with Claims

Community Associations that fall outside the underwriting parameters of the national D&O program markets can expect to pay more in premium with higher retentions for less coverage. Additionally, they will experience a more burdensome underwriting process.


At One80 Intermediaries, we see many associations that have been non-renewed by the standard markets due to claims. When panicked clients call for guidance after receipt of a non-renewal notice, we are here to assist in finding a replacement carrier.


Submission Requirements

  • A new business application
  • Financials including balance sheet and income statement (Profit & Loss)
  • Five years of currently valued loss runs
  • A claim supplemental for each claim


Claim Supplementals

Do not overlook the importance here, as this is the association’s opportunity to describe the allegations in their own words. Care should also be taken in illustrating any remedial measures implemented to avoid similar claims, even where the claim is frivolous. Ideally, the association will be able to demonstrate to the underwriter that there is no systemic problem, but rather that the claims were due to isolated, non-repeating factors.


Checklist for Gathering Claim Details

  • Who are the defendants and claimants?
  • What is alleged? What are the demands? What is the defense to these allegations?
  • When did this occur? Give pertinent dates.
  • Where is this case headed? Update on status (e.g., settlement discussions, trial date, etc.)
  • How will the association prevent similar claims from happening?


Managing Expectations

  • Cost – the premium will exceed standard market rates.
  • Retention – expect a large retention, largely determined by prior claim severity
  • Prior Acts – the underwriters often address prior claim frequency issues with a prior acts exclusion. Seek out Extended Reporting Period (ERP) options from the expiring carrier to address prior acts.
  • In cases with repeat lawsuits by one individual or entity – anticipate a specific individual or entity exclusion. Again, discuss the need for an ERP.
  • You will need extra time, but a quality submission will eliminate much of the back and forth correspondence that slows the process.
  • Standard markets seem to require three to five claim-free years after a loss for eligibility, depending on the severity, frequency, and nature of the claim(s).
  • Pay close attention to the exclusions and definitions for coverage limitations.


Typical Coverage Limitations to Expect

  • The property manager is not automatically an insured
  • Defense of non-monetary claims are subject to a lower limit
  • Insured versus Insured matters are excluded
  • Breach of contract claims are excluded
  • Defense costs are inside the limits, thereby eroding the limits of liability available to pay the potential loss


Your partnership with One80 Intermediaries brings deep carrier relationships and an in-depth knowledge of the marketplace to each transaction. We view hard-to-place submissions as opportunities to excel and earn your business. We look forward to that first opportunity.


Contact info:

Ken Linneman
P:  908-440-7530 // C:  520-780-2638 //  Email:

Additional information: