Before holding any special events such as softball games, carnivals, National Night Out Events or other festivals (especially those that might include a bounce house), be sure to check whether your community’s general liability insurance and umbrella policies cover such events. Although these events are intended to foster a sense of community, an unexpected injury that exposes the association to liability might defeat this purpose.
Insurers often exclude special events related injuries from a community’s general liability and umbrella coverage. If your community’s policies do not cover special events, ask your community’s insurance broker if you can buy and “endorsement” that adds the excluded risk to their coverage. Your San Antonio HOA management company can assist the board in asking for this special endorsement.
Also, if your community is sponsoring an event that includes the potential for extreme risk and involves contracting with an outside vendor, for example, balloon rides, carefully review the contract to make sure there is adequate language holding the community harmless from third-party claims. And verify that the outside vendor has adequate liability insurance. The San Antonio HOA management company can ask for a Certificate of Insurance or COI from the vendor and keep it on file in case of insurance claims.
In the case of balloon rides, experts recommend at least $10 million of liability coverage. The Board may also want to buy a special events policy that covers the community itself for its sponsorship of a one-day event. If the association is unable to get coverage or to transfer the liability to another party, the Board of Directors should seriously consider not holding the event.
For further information on insurance or liability issues, consult your association’s insurance broker or your San Antonio HOA management company.
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