Reasons Associations Need General Liability Insurance

Hello, Woodgate Neighbors! I want to share another topic in our ongoing series of the Woodgate Neighborhood Educational Series. One of the most important steps any neighborhood association can take is securing General Liability insurance. General liability is the 2nd in the one-two punch, when combined with D&O insurance that protects the neighborhood. D&O insurance protects the board, committees, block captains, and in some cases volunteers. While general liability protects our neighbors and attendees at gatherings, events, meetings, etc.

Here’s why this coverage matters to all of us: Much like auto or homeowners' liability insurance, we don’t purchase it out of pride or because it’s inexpensive. We purchase it for protection. We hope we’ll never need it, but we know that even a single incident could cost many times an entire year’s premium.

Financial Safety Net

With general liability insurance, our association has a financial safety net that covers expenses if someone is injured or their property is damaged. It helps stabilize finances and allows us to focus on maintaining a vibrant, welcoming neighborhood instead of worrying about unexpected bills.

Coverage for Everyday Incidents

Accidents can happen anywhere, anytime. Whether it’s a slip and fall, a bounce house mishap, or very hot water spurting from a malfunctioning coffee percolator (Don’t laugh, it almost happened last year!), general liability insurance covers a wide range of everyday incidents that could occur in our community.

Legal Defense Costs

If a claim arises, general liability insurance helps cover legal defense costs, medical expenses, and any settlements or judgments. In today’s legal environment, even minor incidents can result in formal claims. This protection is a responsible way to ensure we’re prepared for whatever comes our way.

Encouraging Participation

Knowing we’re protected as an association makes neighbors, board members, and volunteers more comfortable participating in or hosting events. It can also foster a sense of security and encourage greater involvement in neighborhood activities. It also means we can host neighborhood gatherings and activities with peace of mind, knowing we’re covered if accidents happen.

In Summary: General liability insurance isn’t just a policy; it’s a foundation for a safe, active and financially secure neighborhood. As always, please reach out to me or any of our WNA Board members if you have any questions or want to learn more about our coverage. 

Best regards,

Rick Wood

WNA President