Business · By industry · Community association management
Community association management insurance starts with the management company’s own responsibilities. Review errors and omissions for management services alongside the firm’s other business policies. An association’s insurance or a clause in your management agreement does not by itself establish protection for your company.
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For businesses operating in Washington, Idaho, Oregon or Arizona. Tell us every operating location and service, including work in other states. This guide helps prepare an insurance discussion; it does not establish licensing requirements or confirm that a business or activity qualifies for coverage.
General information vs. our service
What to review
Do not assume it does. The association and the management firm are different parties. Ask whose acts and services each policy insures, including allegations made by the association against the manager. Review the management company’s E&O independently of the board’s directors and officers policy.
Source: Ian H. Graham, community manager E&O considerations (accessed November 13, 2026)
Use a short responsibility record for each type of community. Identify what your team performs, what the board decides and what is delegated to a vendor. Include occasional services and newly acquired accounts, so the insurance review is based on the agreement and actual work together.
| Area | Questions to document |
|---|---|
| Administration | Who maintains records, communicates decisions and tracks deadlines? |
| Budgets and client funds | Who prepares budgets, approves payments and has access to accounts? |
| Vendors and projects | Who selects contractors, signs agreements and follows up on work? |
| Board and resident instructions | How are instructions, approvals, complaints and changes recorded? |
Source: Ian H. Graham, community manager E&O considerations (accessed November 13, 2026)
Send the management agreement and its insurance schedule together. Ask the insurance reviewer to compare the requested limits and policy provisions with what is offered. Ask your legal adviser about indemnities and other contractual obligations; a promise to reimburse another party is not the same as an insurance policy.
Source: Ian H. Graham, community manager E&O considerations (accessed November 13, 2026)
Treat money handling and information access as separate review topics. Explain who can initiate or approve transfers, which accounts belong to the association, and which systems hold resident or vendor records. Ask whether crime, fidelity or cyber provisions address the relevant party and loss; an E&O heading alone does not answer those questions.
| Record | What to include |
|---|---|
| Funds access | Account ownership, authorized roles and payment approval process; omit account numbers from the initial inquiry. |
| Information access | Types of records held, software providers and staff or vendor access; do not send resident personal data. |
| Policy documents | Relevant forms, limits and endorsements for the firm and any association coverage being relied on. |
Source: Ian H. Graham, community association managers program (accessed November 13, 2026)
Compare the retroactive date and claim-reporting requirements before replacing or ending a policy. Identify prior management work and any known circumstances. Ask whether an extended reporting period is available and what it does; it should not be treated as insurance for new services performed after the policy ends.
Source: The Hartford, claims-made and occurrence policy timing (accessed November 13, 2026)
A useful quote starts with the same service list, communities managed, revenue information requested by the insurer, claims history and desired limits. Compare the insured-services wording, defense provisions, deductible and exclusions alongside the premium. NRG does not publish a standard price for a management firm here.
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