As we explored in our previous post, homeowners who drink alcohol at the pool and other public areas raises some legal liability concerns for HOAs. While it is summertime and people are bound to flock to the pools and common areas to have a good time and cool off, has your HOA considered what risk implications this poses? In this article, we’ll take a closer look at how to manage these risks your association is bound to face. In addition, ensure you are protected with a LA HOA Insurance program.
Promoting a fun, positive environment is any community’s goal. However, being prudent in your regulations and how you address and manage these risks makes all the difference when it comes to legal and insurance exposures. From banning alcohol in all common areas to allowing social gatherings to serve liquor on the premises, there are many routes your HOA can pursue.
According to Barker Martin, the policies you choose to implement should contain the following:
- An indemnity / hold harmless agreement when renting or utilizing common areas;
- Compliance with all applicable laws, including obtaining a proper liquor license and absolute prohibition on underage drinking;
- Hiring a licensed, bonded and insured caterer with proper licenses (if applicable for the event);
- Ensure proper insurance and named insured is in place.
Regardless of whatever type of policy your community elects to implement, these policies can mitigate responsibility and ensure your homeowners are consuming alcohol safely in common areas.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.