At the 2025 MARA Conference, Attorneys Mary Denison and Jim Katsiafiakas recommended that Statutory Road Associations consider adding indemnity protection provided by becoming a mutual benefit Non-Profit Corporation. Our local Statutory RA is considering this.

I recently asked Attorney Denison a question using the example of my RA composed of 10 parcels on a private section of gravel road that she helped us form in 2016. I thought her answer might be of interest to MARA Members.

Our Road Association currently has an Insurance policy with Hub International that provides general liability coverage ($2,000,000 Aggregate Limit) and Directors and Officers Indemnity ($1,000,000 Each Wrongful Act; $2,000,000 Aggregate Limit).

QUESTION: Does the above coverage generally seem appropriate to you? If our RA becomes a Non-Profit Corporation, would the indemnity protection provided by Incorporating be worth the additional complexity and expense? Do you think we should discontinue the D & O Indemnity of our current policy?

ATTORNEY DENISON's ANSWER: I think you are currently well-insured and well-protected. You do not need the redundancy of a nonprofit corp in my opinion. If your organization needs to own common real estate or own the roadbed, then it would be appropriate at that time to form a new nonprofit.

I do think you should keep your D&O in place as it provides an additional incentive for other neighbors to serve as officers.