NAICS CANADA CODE: 813990 Other Membership Organizations

Description of Operations:

The membership body of condominium and homeowners associations consists of the individual unit owners. Each individual unit owner owns his or her respective unit but also has duties to the overall maintenance and upkeep of the facilities and common areas, such as hallways, outside fixtures, parking areas, grounds, swimming pools and other recreational facilities, etc. To accomplish this goal, the unit owners either elect or hire association leadership.

The association is responsible for the maintenance of common areas, recreational facilities, outside property and grounds care, as well as the administrative operations. Administrative operations include setting and enforcement of rules for the association membership. The association is also responsible for the determination, collection and disbursement of the necessary assessments to its members for maintenance, upkeep and insurance.

  • Property exposure consists of all the property owned by the association. The bylaws of the association will specify exactly what is owned and how it must be insured. Most of the property is considered building. The only non-building property is that used by the office staff and some of the community building contents.

  • Inland marine exposure comes from the Accounts Receivable and Computers. In addition the lawn equipment may be considered contractors’ equipment although much will be covered as building property.

  • Crime exposure comes from Employee Dishonesty in the handling of the escrowed monies that are to be used for maintenance and repair. If monies are entrusted with other than an employee, make sure the appropriate amendments are attached.

  • Occupier’s liability exposure comes from all of the common areas that are the responsibility of the association to maintain. This will include all sidewalks, community buildings, streets and roads and any other areas that are open for use by the members of the association.

  • Directors and officers exposure exists for all elected officers of the association. The exposure can be minimal when all responsibilities are shifted to an outside management firm. When the association attempts to operate without outside assistance, exposures of the individual officers can increase.

  • Automobile liability exposure is generally limited to hired and non-owned although there may be a maintenance vehicle available in larger communities.

  • Workplace safety exposure is for any employed staff. It is important to make sure that any sub-contracted work be very clear as to the relationship and that certificates of insurance be obtained so that the association will not be ruled as an employer after the fact.

Minimum recommended insurance coverage for condominium/homeowners:

Building, Business Personal Property, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers, General Liability, Directors and Officers Liability, Umbrella, Non-Ownership Automobile

Other Insurance coverage to consider for condominium/homeowners:

Dishonesty, Disappearance and Destruction, Computer Fraud, Employment Practices