Insurance Options for Maine Lake Associations

Gene McKeever, the Allen Agency, Camden, Maine

In this article, I’ll review different insurance policies available to Maine lake associations from the insurance provider COLA has endorsed, the Allen Agency.

The most basic policy is General Liability Policy. This is a policy which defends against claims made against your association, its officers, directors, employees and volunteers for either bodily injury or property damage. My suggestion as to how much coverage (better described as protection) is that you carry a minimum of $1,000,000. This policy is available as a stand-alone policy to associations which basically don’t own any buildings, boats, autos or other property. Pricing of this policy starts at approximately $360 per year and is based on the number of paying members an association has.

The next policy we’ll look at is the so-called Package Policy. This policy applies to associations which have buildings, contents, inventory, boats or other property. It also includes general liability as a covered part, as well as vessel liability. It covers damage to the association’s property as well as the association’s liability claims. The pricing of this policy starts at $1,500 per year and is dependent on how much property and vessel insurance you want to purchase.

The final policy we’ll look at is a very important policy for your association because it insures against claims of mismanagement of the association. It’s called Directors And Officers Liability Coverage. I personally would not serve on any Board unless this coverage was in place first. This policy covers claims of mismanagement, harassment, discrimination, mishandling of funds and a host of other “Personal Injury” claims and allegations. Who’s covered? The directors, officers, employees (if any), volunteers, and their spouses. The amount of coverage is usually $500,000 as a minimum and the annual premium has just come down to $595 for $500,000 and $744 for $1,000,000 of coverage.

This is not meant to explain all about these coverages but to give you a thumbnail sketch of your insurance policy options. Feel free to call me or Becky Robinson with questions. Our phone number is 1-800-439-4311. Or you can e-mail us.