Maine Alliance for Road Associations - Liability Insurance Clearing House

22 Mar 2010 4:48 PM

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Message # 313262

Deleted user

What companies are people using for liability insurance? Our association wants to shop around and get the best price for the director's insurance. I'd appreciate any help you can give me.

State Farm said they didn't write it. I need to contact them again and educate them that it's like condo association liability insurance.

Let's keep everyone up to date on what's transpiring on the liability insurance front. Our association members would like to be rid of it, and instead put that money into our roads. We need to tell the trial lawyer types to stick it and get the legislature to pass a law to grant our associations absolute blanket immunity so we can stop wasting precious resources on insurance.

23 Mar 2010 7:40 AM

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Reply # 313643 on 313262

Anonymous member

This is a great way to use the forum. As we head towards annual meeting season, it's timely. I am going to send out an email to the membership alerting them to this thread. Thanks for posting.

23 Mar 2010 9:25 AM

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Reply # 313679 on 313262

Deleted user

Craig Gordon wrote:
What companies are people using for liability insurance? Our association wants to shop around and get the best price for the director's insurance. I'd appreciate any help you can give me.

State Farm said they didn't write it. I need to contact them again and educate them that it's like condo association liability insurance.

Let's keep everyone up to date on what's transpiring on the liability insurance front. Our association members would like to be rid of it, and instead put that money into our roads. We need to tell the trial lawyer types to stick it and get the legislature to pass a law to grant our associations absolute blanket immunity so we can stop wasting precious resources on insurance.

We have checked around and found 3 companies that will write liability for our association; AM Best, Acadia and an underwriter for Harold Bishop Co. in Boothbay area.
Cost ranges from $400.00 to $1338.00 for $!000000 per occurance and $2000000 aggregate per year.
We are still trying to "justify" the purchase in our minds.
We would agree about the "immunity" for road associations!

23 Mar 2010 1:29 PM

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Reply # 313847 on 313262

Deleted user

Oberg and Chalmers in Bridgton ME are both quoting reasonable insurance for Road Associations.

Joel

08 Jul 2010 4:33 PM

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Reply # 378860 on 313262

Anonymous member

I just received a quote for $1 million general liability at $350/yr. To include Officers & Directors the cost would be $523. We'll be discussing this at our annual meeting 7/10/2010.

09 Jul 2010 9:15 AM

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Reply # 379215 on 313262

Deleted user

We just got a quote from the Whittemore Insurance Agency in Norway for a $1M/$2M policy, that includes Officers and Directors insurance for $520/ year. We will be looking for other quotes as well but needed an idea of what it will cost prior to our annual meeting tomorrow (July 10).

Peter Koch
Cobbs Cove Road Assn.

12 Jul 2010 9:03 AM

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Reply # 380849 on 313262

Anonymous member

7. Immunity from suit. A commissioner, board or owner of a parcel of land who undertakes activities of a road association under this subchapter is immune from civil liability in all actions by owners or lessees of other lots for the following activities:

A. The determination of repairs and maintenance to be undertaken; [2009, c. 238, §1 (NEW).]

B. The determination of materials to be furnished or amount of money to be paid by each owner for repairs and maintenance; [2009, c. 238, §1 (NEW).]

C. The collection of the money from each owner; and [2009, c. 238, §1 (NEW).]

D. The awarding of a contract authorized under section 3103. [2009, c. 238, §1 (NEW).]

[ 2009, c. 238, §1 (NEW) .]

The above language is "new" to Section 3101 of the Private Way Law as of 2009. I feel it makes the need for liability insurance, particularly D&O, somewhat minimal. Of course you always have the old adage that " anyone can sue anyone for any thing".

It appears that the MARA web page may not have been updated to the revised law.

12 Jul 2010 9:26 AM

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Reply # 380864 on 380849

Deleted user

Peter Dunn wrote:

7. Immunity from suit. A commissioner, board or owner of a parcel of land who undertakes activities of a road association under this subchapter is immune from civil liability in all actions by owners or lessees of other lots for the following activities:

A. The determination of repairs and maintenance to be undertaken; [2009, c. 238, §1 (NEW).]

B. The determination of materials to be furnished or amount of money to be paid by each owner for repairs and maintenance; [2009, c. 238, §1 (NEW).]

C. The collection of the money from each owner; and [2009, c. 238, §1 (NEW).]

D. The awarding of a contract authorized under section 3103. [2009, c. 238, §1 (NEW).]

[ 2009, c. 238, §1 (NEW) .]

The above language is "new" to Section 3101 of the Private Way Law as of 2009. I feel it makes the need for liability insurance, particularly D&O, somewhat minimal. Of course you always have the old adage that " anyone can sue anyone for any thing".

It appears that the MARA web page may not have been updated to the revised law.

Note that the immunity granted only extends to actions taken by "owners or leseees of other lots", and only for certain activities (determination of work to be done, setting of assessments, collection of assessments, and awarding of contracts). None of this will help if a visitor suffers damages or injury, and claims the road was the cause.

14 Jul 2010 8:37 AM

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Reply # 382277 on 313262

Anonymous member

Chapter 3 of the says the following;

Statutory road associations may also incorporate as nonprofits. It is perfectly legal for an association to do both. Incorporation as a nonprofit is at minimal cost to start and maintain. It gives liability protection that is cheaper than insurance.

How does incorporation as a "nonprofit" give more protection? Where can I read about it?

14 Jul 2010 10:31 AM

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Reply # 382350 on 382277

Deleted user

Peter Dunn wrote:Chapter 3 of the says the following;
Statutory road associations may also incorporate as nonprofits. It is perfectly legal for an association to do both. Incorporation as a nonprofit is at minimal cost to start and maintain. It gives liability protection that is cheaper than insurance.

How does incorporation as a "nonprofit" give more protection? Where can I read about it?

Incorporation doesn't exactly provide liability protection. Corporations can be sued just the same as anybody else. What incorporation does is to place a barrier between the owners/members of the corporation and anyone who might want to sue the corporation. That is, they can sue the corporation, but they cannot sue its members. Your personal liability, as a member of the corporation, is limited to your investment in the corporation.

Does this mean you don't need to carry insurance? Probably not. Directors and officers of the corporation can still be sued, personally. And unless the plan is to declare bankruptcy in the event of a judgment against the association, the association would still have to raise funds to pay any damages.