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Don't Put Your HOA at Risk by Not Tendering Claims to Insurance Carriers

Homeowner association management personnel are frequently confronted with situations that involve actual or potential claims being made by a third-party such as a homeowner or an injured worker. The association typically first learns of such claims through verbal or written communications that are received from the potential claimant or a legal representative of that person. How the association deals with the information received concerning an actual or potential claim can make the difference between being covered, and not being covered, by insurance if the claim progresses to a lawsuit or a judgment imposing liability on the association. It can also make the difference in whether or not the association’s insurance carrier provides costly legal counsel to defend against the potential liability on the claim.