COMMERCIAL GENERAL LIABILITY INSURANCE

Commercial General Liability ("CGL") insurance protects members for damages sustained in the common areas (such as slips and falls). By statute, associations must carry a at least a minimum level of insurance to protect against naming owners personally solely because of their ownership interest in the common areas (Civil Code §1365.9)

Occurrence Form. CGL policies are "Occurrence Form" rather than "Claims Made." This means the event leading to the claim must occur during the policy period. Accordingly, it is important that associations keep an accurate record of their insurance policies until all statutes of limitations expire on potential claims. To be safe, expired insurance policies should be kept for at least seven years.

For insurance brokers who specialize in homeowner associations, see the Service Directory

Updated by ADAMS KESSLER 9/30/2008