The Community Connection - October 2020

NE F L C A I . C OM

V OL .

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I s s u e

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No r t h e a s t F l o r i d a C h a p t e r C o mmu n i t y A s s o c i a t i o n s I n s t i t u t e

THE COMMUNITY CONNECTION

THE ROAD AHEAD THESE ARTICLES (AND MORE) THESE TIMES. THESE THINGS. if you weren't already doing these things for your company or association, you will be now

CORONAVIRUS AND INSURANCE could there be some claims in the coming months?

HALLOWEEN SAFETY how to have a happy Halloween

events

contact information 42200 N Checkerberry Way St. John's, FL 32259 ced@neflcai.com

2020 board of directors President - David Robinson First Coast Mulch President - Elect - Pilar Willis Dixon, CIC, CIRMS Brown & Brown Insurance

Did you miss the program with Dawn Bauman, Senior Vice President, Government & Public Affairs with CAI headquarters? You missed a great overview of the 2021 Legislative Session priorities.

CLICK HERE TO SEE THE PRESENTATION Also, stay tuned, we are working on some inperson events (following safety guidelines) for November and December.

welcome video from our new chapter executive director

Secretary - Leslie Pragasam, LCAM Vesta Property Services Treasurer- Jesse Skinner, LCAM, CMCA Leland Management Director - Scott Francis, CAM Manager Director - Cindy Dunlop Cogent Bank, SVP, Commercial Relationship Manager Director- Carmen Mazzeo, LCAM Homeowner Leader Immed. Past President - Catie Marks, CAM MAY Management Chapter Executive Director- Robin Miller NEFLCAI

NEFLCAI provides education, networking, resources, and advocacy for Community Associations in Northeast Florida and the professionals who serve them.

2020 committees Membership Carmen Mazzeo - Board Liaison Mary Price James Klempin Social Leslie Pragasam - Board Liaison Kyle Stoudenmire Program Pilar Willis Dixon - Board Liaison Ed Ronsman

letter from the president WRITTEN BY DAVID ROBINSON FIRST COAST MULCH Wow,

another

quarter

has

come

and

gone!

They are developing additional events and

While this quarter did not turn out as social as

meetings. Please reach out if you'd like to get

we’d hoped, a lot has been accomplished by

involved. While we can not know what’s going

our members, committees and new CED.

to happen this quarter, it shouldn’t prevent us from planing to fulfill our ultimate goals of

First and foremost our chapter has teamed up

Educating and Networking safely. Please keep

with a CED that hit the ground not running, but

an eye on your email for attempts to hold

sprinting. Robin started with us Mid-July and if

events in person as well as virtual

you have had any interaction with her at this

events/meetings. Lastly, if you are

point, you’ve already experienced her level of

interested in running to join the Chapter Board

professionalism.

please reach out to Robin to inquire.

She

ran

our

Education event, which was with

800

registrations

Wham

Bam

a massive success

from

participating

managers and/or community leaders. The event provided the opportunity for members to gain approved

continuing

education

credits

by

members with approved courses. She has also worked

with

implement

a

our

website

platform

developers

that

increases

to

both

member engagement as well as data tracking and streamlined event processing. The website has taken a bit longer to develop due to the additional

functions,

but

will

be

Find the hidden

launched

shortly and was well worth the additional wait.

Our chapter has successfully gone virtual. This

Somewhere in this publication (other than this page) is the icon above. Find it and submit your answer of what page you found it on.

Sumbit your answer HERE ON THIS GOOGLE FORM.

transition will prove to be a useful tool even after we start meeting in person by allowing members

to

Committees recruiting

view are

meetings still

additional

from

meeting

members

anywhere.

and to

always

help

work

through the pandemic's unnavigable waters.

If you found it correctly, you will be entered to win a 1/4 page ad in the next newsletter. We will pick the winner at random, and let you know.

Travel Tips & Tricks by JM Lorenzo WRITTEN BY NINA LOPEZ PHOTOGRAPHY: LUZ SIMPSONS

Thanks to our Speakers!

Nick Brenneman, Reserve Advisors Shar Caballero, Envera Systems Kelly Corcoran, Ball Janik Brian Crevasse, Ball Janik Mark D'Amico, First Coast Claim Consultants & ATAC Adjusters Christene Ertl, Ansbacher Law

Travel is the movement of people between relatively distant geographical

Pilar Willis Dixon, Brown & Brown Insurance

locations, and can involve travel by foot, bicycle, automobile, train, boat, airplane,

Cindy Dunlop, Cogent Bank

or other means, with or without luggage, and can be one way or round trip. Travel

Jeff Gay, Leland Management

can also include relatively short stays between successive movements.

Jennifer Mitchell, St. Johns River Water Management District

Travel may be local, regional, national (domestic) or international. In some countries, non-local internal travel may require an internal passport, while international travel typically requires a passport and visa. A trip may also be part of a round-trip. The origin of the word "travel" is most likely lost to history. The term "travel" may originate from the Old French word travail.

Ed Ronsman, McCabe|Ronsman Robyn Severs, Becker & Poliakoff Charlie Sheppard, Community Advisors Laurie Shrader, Angius & Terry Paul Terry, Angius & Terry Hans Wahl, Jimerson Birr

According to the Merriam Webster dictionary, the first known use of the word travel was in the 14th century.

NEFLCAI - 2020 Sponsors Many thanks for your support Platinum Sponsors

Gold Sponsors

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How to Have a Safe Halloween COURTESY OF: COMMUNITY ASSOCIATIONS INSTITUTE Halloween is a kid’s delight. It’s a blast to dress

Use party games and trick-or-treating as an

up in costumes, go trick-or-treating, attend

opportunity

parties and, most of all, eat candy.

for kids to get their daily dose of 60 minutes of physical activity.

At the same time, Halloween can be scary for

Be sure walking areas and stairs are well-lit

parents.

and free of obstacles that could cause falls.

Costumes can be dangerous, too much candy

Keep candle-lit jack-o-lanterns and other

can be sickening and walking around

open flames away

at night can be risky.

from doorsteps, walkways, landings and curtains. Place them on sturdy tables,

If you’re hosting a party or expecting trick-or-

keep them out of reach of pets and small

treaters:

children and never leave them

Provide healthy treats, such as individual

unattended.

packs of raisins, trail mix or pretzels. Offer

Drive safely and watch out for trick-or-

fruits, vegetables and cheeses to party

treaters.

guests.

The Centers for Disease Control and Prevention offer these tips (in anagram form) to make sure your little ghouls and goblins have a safe Halloween [during a normal year, please double-check their guidelines or the guidelines in your county/town due to COVID-19]:

S – Swords, knives and similar costume accessories should be short, soft and flexible.

A – Avoid trick-or-treating alone. Children should walk in groups or with a trusted adult.

F – Fasten reflective tape to costumes and bags to help drivers see trick-or-treaters.

E – Examine all treats for choking hazards and tampering before they’re eaten.

H – Hold a flashlight while trick-or-treating to help see and help others see you.

A – Always test make-up in a small area first. Remove it when done to avoid skin irritation.

L – Look both ways before crossing the street. Use established crosswalks wherever possible.

L – Lower the risk for serious eye injury by avoiding decorative contact lenses.

O – Only walk on sidewalks or on the far edge of the road facing traffic to stay safe.

W – Wear well-fitting masks, costumes and shoes to avoid blocked vision, trips and falls.

E – Eat only factory-wrapped candy. Avoid eating homemade treats unless you know the cook.

E – Enter homes only if you’re with a trusted adult.

N – Never walk near lit candles or other open flames. Be sure to wear flame-resistant costumes.

These times.

These things.

WRITTEN BY ROBIN L. MILLER NEST COMMUNITY MARKETING CHAPTER EXECUTIVE DIRECTOR, NEFLCAI

if you weren't already doing these things, you will now If you didn’t already see the power of groups

If you didn’t spend time understanding the

coming together and working in unity, you will

emotional and personal needs of your staff, you

now.

will now.

If you didn’t already focus on innovation and

If you didn’t already have a plan in place for

ideation as a regular part of your group or

crisis communications and risk management

company’s goals, you will now.

and business interruption, you will now.

If you didn’t already have a futures component

If you didn’t already have a solid and clean

to your regular conversations and staff

database to be able to quickly and efficiently

meetings, you will now.

reach your customers, members and vendors, you will now.

If you didn't spend time thinking about the “T” and “W” in a SWOT analysis “Threats” and

If you didn’t already understand who your

“Weaknesses,” you will now.

customers are and what they want from you, you will now.

If you didn’t already know the many, many stakeholders you have—the people and groups

If you didn't already rely on a cross-sectional,

whom your organization, company or products

diverse leadership team where all departments,

impact, you will now.

despite their differences, are needed to solve problems, you will now.

If you didn’t already have alignment from your boards and staff and funders related to policies and procedures, you will now.

About the Writer: Robin L. Miller is a seasoned trade association consultant, marketing and branding expert, and community engager. She is the President of NEST Community Marketing LLC, and NEFLCAI is happy to be her client.

NEFLCAI Bronze Sponsors

The Overlooked Facet of Community Pond Management: Structure WRITTEN BY SHANNON JUNIOR, AQUATIC ECOLOGIST & SENIOR BUSINESS DEVELOPMENT CONSULTANT PHOTOGRAPHY: SOLITUDE LAKE MANAGEMENT

Lakes and ponds can be amazing focal points of

although, more commonly, it is the responsibility of

our

the pond owners.

communities.

water,

and

People

local

are

innately

waterbodies

drawn

create

to

natural

spaces to enjoy a morning run, an afternoon walk

Unfortunately,

with

understand your HOA’s obligations for each of the

the

Many

dog,

or

a

neighborhood

communities

implemented

that

I

social

event.

with

have

work

beautification

and

habitat

facilities

in

it

the

responsibilities

can

also

community, can

vary

be

confusing

especially between

to

when

the

localities,

enhancement projects for their ponds, and some

communities, and the facilities themselves. The key

have even hosted kids fishing derbies or remote

documentation that outlines the responsibilities of

control boat races. But while maintaining healthy

the HOA for stormwater facilities in the community

and attractive waterbodies is a priority for most

is the Stormwater Maintenance Agreement with the

HOAs,

functional

locality. This document should exist for every facility

maintenance activities are frequently overlooked.

that is part of an approved site development plan,

It’s

and should be on file with the locality if you aren’t

the

basic

relatively

manager

easy

or

structural

for

the

resident

to

and

average identify

community when

their

able to locate it.

stormwater pond is experiencing problems when it’s covered in weeds and algae or when the fish

Your

stop

typically a knowledgeable resource when it comes

biting,

but

many

of

the

tell-tale

signs

of

lake

and

structural trouble are more subtle and difficult to

to

identify.

professional

pond

understanding

the

management

frequency

inspections.

and

provider

is

formality

Typically,

the

of

age,

condition, and complexity of the facility are taken Lakes

and

ponds

can

occur

naturally

in

the

into account, as well as the regulatory requirements

landscape, but more often they are man-made,

of

constructed for drinking water supply, irrigation,

management

livestock watering, recreational use, or stormwater

inspections of the entire facility. If concrete inlet

management—as

pipes are present, they should also be checked for

waterbodies.

is

the

There

case

are

for

most

many

HOA

important

the

locality.

spalling,

On

a

regular

professional

cracking,

and

basis,

will

your

provide

misalignments.

lake visual

The

outlet

components in a stormwater management facility

structures should be checked to ensure that water

that help regulate water levels, filter debris, and

is properly flowing and that there are no blockages

prevent

or damage to the trash rack, if one is present. It is

flooding.

components

All

require

of

these

and

also important to monitor the water level in the

maintenance to ensure the continued integrity and

pond – an abnormally high or low water level for an

functionality of the waterbody. Without proactive

extended

monitoring,

serious structural issue. The pond banks, including

it

is

frequent

structural

easy

to

inspections

accidentally

overlook

dam

period

of

time

embankment,

could

should

be

be

a

sign

of

inspected

a

serious structural damage and volume loss until

the

for

the problems require costly repairs and invasive

erosion and animal burrows. They should be well

solutions like dredging.

vegetated with no bare spots. Finally, there should be no woody growth on the dam embankment or

In some localities, the inspection and maintenance

within 10 feet of any pond structure since tree roots

of

can

stormwater

referred

to

as

management ‘BMPs’

or

facilities

'best

(also

management

practices’) is handled by the City or County;

compromise

the

structural

integrity

of

the

embankment and can cause cracking, displacement or blockage of pipes.

If potential areas of concern are identified, it is always cheaper to remediate them early rather than to perform costly repairs after the problems become more severe. For wet ponds, bathymetric

NEFLCAI The Community Connection Advertising

studies should be performed periodically to document

the

current

storage

facilities

and

the

extent

Likewise,

more

comprehensive

volume

of

of

the

sedimentation. monitoring

with

annual lake and pond assessments can pinpoint areas of potential concern and facilitate the development solutions

of

custom

include

management, biological

aquatic

aeration,

weed

hydro-raking

nutrient and

Common

and

nanobubble

augmentation,

mechanical

solutions.

algae

technology, remediation,

strategic

erosion

control. These strategies can be implemented as needed

depending

characteristics,

on

the

goals

and

unique

and

unique budget

property of

the

community.

Each

facility

managed stormwater

is

using

a

is

most

customized

maintenance

effectively

approach.

professional

Full Page - $300/issue Half Page - $200/issue Quarter Page - $100/issue Logo - $50/issue

can

A

help

you develop a specific plan that prioritizes the goals of your community, so you can cut down on maintenance and expenses over time.

About the Writer: Shannon Junior is an Ecologist with SOLitude Lake Management, a nationwide environmental firm that provides sustainable lake, stormwater pond, wetland and fisheries management solutions. Learn more at www.solitudelakemanagement.com/knowledge.

Upcoming Issues 4th Quarter December 2020 (due 11/15) 1st Quarter February 2021 (due 1/15) 2nd Quarter May 2021 (due 4/15) 3rd Quarter August 2021 (due 7/15) 4th Quarter November 2021 (due 10/15)

FLORIDA LEGISLATIVE ACTION COMMITTEE UPDATE Legislative Action Committees work to monitor state legislation, educate lawmakers, and protect the interests of those living and working in community associations. Each committee is comprised of homeowner leaders, community managers, and representatives from community association business partners who graciously volunteer their time. For our region, Pilar Willis Dixon, Brown & Brown Insurance, and Robyn Severs, Becker & Poliakoff represent our chapter and the region at large.

CAI’s Florida Legislative Action Committee is preparing for the 2021

legislative

proposed

this

session.

year

will

We

expect

relate

to

an

that

many

of

association’s

the

bills

ability

to

respond to COVID-19 and other similar viruses, as well as to provide some protections to such associations. Until we have further information to report about any proposed bills, below is a recap of what passed in 2020.

EMOTIONAL SUPPORT ANIMALS-SB 1084 Effective July 1, 2020, Section 760.27, Florida Statutes, was amended,

regarding

emotional

support

animals

(ESA),

to

expand the type of allowable documentation that can be used to verify the need for an ESA; to allow telemedicine providers and

out

of

state

licensed

providers

to

provide

ESA

documentation so long as they are acting within their scope of practice, have knowledge of an individual’s disability, and have seen the patient in person on at least one occasion;

and to require a person requesting more than one ESA, to provide a specific need for each animal. The bill also allows providers

who

provide

false

documentation

to

be

punished

under Florida law and updates liability language to ensure the owner of the ESA can be held liable for any damage done by an ESA.

FLORIDA INSURANCE GUARANTEE ASSOCIATION (FIGA)-HB 529 Effective

July

1,

2020,

Section

631.57,

Florida

Statutes,

was

amended to increase the FIGA limit from $100,000 to $200,000 per unit in a building. FIGA is similar to FDIC insured bank accounts. If there is a major storm event and the Association’s insurance carrier is unable to pay the claims, FIGA steps in to pay them. Before the amendment, FIGA could only pay up to $100,000 per unit. With this bill, that limit has been increased to $200,000 per unit.

LAW ENFORCEMENT VEHICLES- SB 476 Effective February 21, 2000, Chapters 718, 719 and 720 were amended to prohibit community associations from prohibiting law enforcement officers to park their law enforcement vehicles in the community.

FIREWORKS- SB 140 Effective April 8, 2020, Section 791.08, Florida Statutes, was amended to allow the use of fireworks on New Year’s Day, Independence

Day,

and

New

Year’s

Eve.

If

a

homeowners’

association wants to restrict or prohibit the use of fireworks, it must do so by a provision in a declaration of covenants and restrictions, not by a board adopted rule. However, the bill did not affect any rights of condominiums and cooperatives.

DISCRIMINATORY ASSOCIATION LANGUAGE- SB 374 Effective September 4, 2020, Section 712.065, Florida Statutes, was amended to clarify that any discriminatory restriction in any covenant or restriction is null and void. Upon the request of a parcel owner, a community association’s board of directors may amend any governing document to remove such discriminatory restriction.

HOUSING FOR OLDER PERSONS- HB 255 Effective July 1, 2020, Section 760.29, Florida Statutes, was amended

to

remove

the

requirement

for

55

&

older

communities to register with the state biennially and pay fees associated

with

such

registration.

While

55

&

older

communities still have to follow certain statutory requirements to maintain their 55 & older status, such communities no longer have to register their community with the state.

These are definitely unchartered waters.

CORONAVIRUS AND COMMUNITY ASSOCIATION INSURANCE MANAGING EXPECTATIONS DURING THE PANDEMIC WRITTEN BY JOEL W. MESKIN, ESQ., CIRMS, CCAL FELLOW, MLIS, EBP

the coronavirus pandemic has found most of us with our arms up in the air.

My

question,

spending

a

questions

on

coverage is:

as

someone

great the

deal

who

has

time

answering

of

Coronavirus

and

been

insurance

I

presume,

but

do

not

requirements

will

coverage

direct

for

not

assume, be

that

met

physical

to

these trigger

damage

in

the

did any prior pandemic, epidemic

majority of jurisdictions. I also presume, but do

or outbreak of a communicable disease lead to

not assume, that contingent damages arising or

the

now

resulting from the alleged property damage will

and

not

myriad

being

of

asked

immediate

insurance to

issues

respond

responses.

we

with

Maybe

are

clear

our

standard

response should be “maybe” or “it depends” on

be

covered.

include

business

These

potential

interruption

coverages

loss,

loss

of

business income or loss of use.

many variables before an intelligible response can be provided.

The

anticipated

arguments,

protracted

litigation, attorney fees and costs, as well as This

conundrum

provides

numerous

the fees and costs of countless multidisciplinary

opportunities for creative coverage attorneys

experts will depend on specific policy wording,

representing

state

Insureds

to

boldly

assert

and

laws,

court

interpretation,

will

coverage

ultimately determine coverage or no coverage.

coverage

under

the

to

exist.

Insured(s)

To

trigger

Association

these

factors

creative

intended

All

and

plausibly argue to find coverage where no such was

attorneys.

judges

These coverage issues and related litigation

Property Policy requires the existence of the

will undoubtedly go on for years, or until the

coronavirus

insureds can no longer afford the fight.

in

a

common

area

constituting

“property damage.” To satisfy the existence of

would

property

expect, just Google Insurance Coverage Issues

damage,

most

property

policies

like

to

out

get

of

a

the

taste

of

World

what

If you

Trade

we

can

require that there is a "Covered Cause of Loss"

arising

Center

(i.e. is the coronavirus a covered cause of loss)

Occurrence/Occurrences.

that results in direct physical loss of or damage

insurers may choose to resolve such claims on a

to the Insured(s) covered property?

cost of business basis. This is less likely due to

On the other hand,

the nature and extent of the potential claims.

I do not believe that insurers ever intended for

The focus of the issues set forth below involves

coverage to exist under these circumstances.

the

There

amenities”

are

potential

language, providing

caseswhere

endorsements coverage

exist.

or I

express

definitions

also

confidently

“common

elements,

of

a

property

not-for-profit

and

community

association such as a Condo, Coop or HOA. In addition,

the

focus

here

the

exposures

in

coronavirus existing in/on a common element.

modeling

they

acceptable

use

and

anticipate

the

These may have issues that differ from an analysis of a business where direct financial

criteria, necessary to properly price coverage

loss will result from the closure of a business

for

due

intended

ratios

best

other

of

underwriting

the

loss

to

and

existence

alleged

consequences

rating

the

on

contend that actuaries did not consider these developing

from

is

exposure.

Again,

this

is

different where there is specifically crafted or

to

direct

physical

loss

to

the

Insured’s

property.

included provisions creating coverage.

In order to analyze the existence of coverage

COMMUNITY ASSOCIATION FOR CORONAVIRUS

INSURANCE

under

the

various

community

association

program, it is helpful to understand how to look and

review

an

Notwithstanding

association insurance puzzle.

policies have for being filled with small print

that Insured(s) may seek coverage under the

and

four highlighted policies below, General

madness.

Liability, Coverage,

Directors Workers

and

Officers

Compensation

and Property Coverage.

legalese, The

bad

there carriers

is

rap

a

need

that

policy.

The above chart sets forth the basic community It is anticipated

the

insurance

insurance

method to

to

protect

the the

Liability

intent they have behind an insurance product.

Coverage

Accordingly, if they do not cross every “t” and dot every “i”, they will be challenged on virtually every claim because without being this careful,

the policy will be attacked as having language that is vague and ambiguous resulting in having the language being construed in favor of the Insured(s).

For

all

intent

casualty

and

policies

purpose, are

built

all

property

the

same

and way.

Specifically, they are structured as follows:

Insuring Agreement – Gives you the world • Definitions – Defines the World • Exclusions – Takes away a part of the world •

-Covered under another policy -Would make the policy unaffordable if not excluded -Against Public Policy •

Conditions – What Insured must do to trigger coverage

•

Endorsements and Amendments

– change

the basic form.

-Issued with policy -Including State Amendatory endorsements -Added later

As the issues on the next pages are reviewed, the

structure

set

forth

above

will

help

your community counts. your vote counts.

understand why coverage is applicable to the potential coronavirus alleged claim for injury or

Register to Vote.

damage.

Issue No. 1:

Most property insurance policies

require that the Insured(s) property suffer direct

Research the Candidates.

physical damage to Insured property resulting from a covered peril. Does the existence, or possible direct

existence

physical

of

loss

coronavirus

or

damage

property?

Response No. 1:

Get Out the Vote.

constitute to

Insured

Go Vote.

Probably not.

CLICK HERE to go to CAI's election & voter registration page

Issue No. 1:

Most property insurance policies require that the Insured(s) property suffer direct physical

damage to Insured property resulting from a covered peril. Does the existence, or possible existence of coronavirus constitute direct physical loss or damage to Insured property?

Response No. 1:

Probably not.

Insured(s) will try and assert that the coronavirus introduced into the common elements constitutes direct physical loss or damage. Policy interpretation is subject to state law. Courts in some states have opined that contamination and other incidents that render property uninhabitable or otherwise unfit for its intended use constitutes a "physical loss."

I believe that this is the minority opinion. Moreover,

this argument would not be to the Coronavirus.

The Coronavirus issue in community associations is not really the existence of contaminated property as a result of the virus. One study concluded as follows:

“The researchers behind the new study tested the virus' life span in a 71-degree-Fahrenheit room at 65% relative humidity. After three hours, the virus had disappeared from printing and tissue paper. It took two days for it to leave wood and cloth fabric. After four days, it was no longer detectable on glass or paper money. It lasted the longest, seven days, on stainless steel and plastic.� (Business Insider, April 7, 2020 - https://www.businessinsider.com/coronavirus-lifespan-on-surfaces-graphic-2020-3)

The coronavirus issue in community associations arising out of the closing of non-essential common elements to prevent social gathering and the spread of the virus. An association not heeding governmental orders or the recommendation of virtually all health care providers what the association should be concerned with.

The coronavirus as is discussed each day all day in the news has an extremely short life. By the time that the property can be tested for any contamination by coronavirus, or the governmental orders are lifted, the existence of the coronavirus would be moot. The coronavirus would no longer exist.

The physical nature and life of the coronavirus is different than that of asbestos and mold where there are much stronger arguments that they constitute contamination of actual property damage and will not go away without remedial measures. Coronavirus will self-eliminate.

Issue No. 2: Is there coverage for testing and or remediating costs?

Response No. 2: Probably Not. There is no coverage for testing or remediation costs, again if there is no direct physical damage or loss. The discussion to this response is the same as Response No. 1.

Issue No. 3:

In the unlikely event that the coronavirus is considered “property damage� will there be any

other impediment to coverage?

Response No. 3: A. Yes.

Even if the property damage is established, there are numerous exclusions that would apply.

These exclusions further support that insurers had no intent to provide coverage.

B.

No.

Coverage may exist where a policy may have a specific endorsement. This is not likely for

community associations, however, because of extremely prohibitive costs. This is more likely in an industry such as Restaurants and the Hospitality industry where the significant cost can be included in the cost of doing business. These supplemental coverages in the normal course will not include the direct physical loss of damage requirement. Accordingly, the mental gymnastics of whether there is property damage or not is avoided.

Issue No. 4: Is there coverage for consequential damages such as Business Interruption, Loss of Income or Loss of Use?

Response No. 4: No. For these coverages for consequential damages, the damage must again result from Direct Physical damage or loss to The Insured(s) property. Accordingly, the same discussion in Response No. 1 above will apply here.

Keep in mind that Business Interruption insurance is intended to protect businesses against income losses sustained as a result of disruptions to their operations. Contingent business interruption coverage similarly provides insurance for financial losses resulting from disruptions to a business's customers or suppliers, usually requiring that the underlying cause of damage to the customer or supplier be of

a type covered with respect to the business's own property.

In the community association context, the interruption of operations may be argued to be the unit owner members’ inability to pay fees and assessments.

This is not the result of coronavirus in the community

association, but the result of the impact on their business or employment. This is too attenuated from the community association.

With respect to the association’s inability to pay business partners such as

landscapers, pool services or the like, the potential issue would not be a property policy issue. potential risk will a claim or suit against the association for breach of contract.

As a breach of contract

issue, there may be a defense pursuant to a Force Majeure provision in the contract (unforeseeable circumstances that prevent someone from fulfilling a contract.)

Issue No. 5: If the Board opens common elements such as pools, clubhouses and gyms, will any insurance policy defend or indemnify the Board?

Response No. 5:

No.

The

Issue No. 6:

If a unit owner or guest got sick with COVID-19 alleging the association negligently

maintained the common elements that could not be closed (i.e. Elevators, entry doors or stairways)?

Response No. 6:

Probably No.

COVID-19

Issue No. 7:

Is the COVID-19 disease covered under workers compensation policy?

Response No. 7:

No.

COVID-19

COVID-19

CONCLUSION:

In going through analysis of each issue above, it should be clear under which portion of the policy structure.

(1) Does the alleged claim meet the elements of the insuring agreement; (1) if one is satisfied,

does one of the definitions work to defeat coverage; (3) if

there are no definitions to defeat coverage,

are there any exclusions that apply and is the exclusion preclude defense and indemnity, or just indemnity still requiring the carrier pay for the defense; (4) Is there an applicable condition that has not been made, such as the time in which a claim must be reported to the carrier; and, (5) is there an endorsement that changes any terms or conditions or removes an exclusion or condition.

I always make it a practice to

review the endorsements first and be prepared to know if something I review in the actual policy has been changed.

I opine that there is not going to be coverage under any of these policies for any of the issues presented.

However, that does not preclude the possibility that attorneys will not challenge the basic policy forms.

Insureds will have to do a cost benefit analysis in the event there is a possibility to challenge a policy provision.

(Copyright Š 2020 Joel W. Meskin)

By Joel W. Meskin, Esq., CIRMS, CCAL Fellow, MLIS, EBP THIS ARTICLE IS NOT A LEGAL OPINION, IS NOT THE POSITION OF ANY SPECIFIC INSURER OR THE MCGOWAN COMPANIES. THESE ARE THE BEST THOUGHTS OF THE AUTHOR.

Is a Community Association Responsible for the Acts of Its Volunteers?

WRITTEN BY ROBYN SEVERS, BECKER LAWYERS Community associations can be a great place

-surance carrier to ensure that it has insurance

for community involvement. It is always nice to

for

see

association

members

get

involved

and

help

with

volunteer

workers.

should

not

If allow

not,

then

volunteer

the work

operating the association. However, should the

without obtaining such insurance coverage.

If

association be concerned about the actions of

there is insurance coverage, you should ensure

these volunteers?

that the person performing the work meets the definition of a volunteer, per the terms of the

An association may be held liable for the acts

insurance

policy.

Also,

there

should

be

a

of its volunteers, depending on the situation.

determination as to what work, damage, and

Accordingly, it is important to confirm that the

injury is covered per the terms of the policy.

association will be protected if something goes

a volunteer worker exceeds the scope of any

wrong. The association should contact its in-

covered work, or if the damage/injury is not

If

covered under the terms of the policy, then the association may be exposed to liability. Obviously, determining

the

scope

of

insurance

coverage

requires

a

factual

and

legal

review,

and

the

association should seek the guidance of an attorney when determining the scope of insurance coverage.

Additionally, to further assist in limiting any potential exposure to liability, an association should create a list of official duties to be performed by each volunteer and have the volunteer sign a form acknowledging that the association has only authorized the volunteer to perform the duties on the list. Volunteers should not be permitted to engage in potentially hazardous activity or any activity that involves undue physical strain. In addition, an association should: not allow volunteers to perform any services that require the use of a licensed vendor/contractor or which would require a permit. seek legal guidance on whether a licensed vendor/contractor or permit is required for the work the volunteer will be performing. consider

obtaining

releases/indemnifications

from

volunteers

performing

services

for

the

association.

While

we

understand

this

may

discourage

individuals

from

volunteering,

an

association

has

a

fiduciary obligation to its members, which could include an obligation to protect the association from potential exposures to liability. Community involvement is wonderful but protecting the association is paramount.

We miss you and can't wait to see you soon.

BOARD OF DIRECTORS NORTHEAST FLORIDA CHAPTER COMMUNITY ASSOCIATIONS INSTITUTE

NEFLCAI.COM CED@NEFLCAI.COM