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endorsement, if necessary, to provide the protection they need. The two association bank account hacking incidents she handled last year were the first Canaan had seen in nearly two decades with CAU. “But in this world,” she predicts, “these losses could become a lot more common.”

Everyone Is a Publisher
Insurance questions also arise, in big ways, in the communications arena, where associations are encountering liability risks most never envisioned.

Boards probably don’t think of themselves as publishers when they post information on their Web sites, host online chat rooms or exchange e-mails with owners or other trustees. But an April report by Betterley Insurance Consultants notes, in the Internet communications world, “media liability is no longer the concern of just traditional media companies. With the spread of the Web, social networking and the need to stand out in a crowded and noisy economy, we are all media companies,

engaging in activities once thought to be the exclusive presence of the traditional media,” and incurring the same liability risks of any other print publisher or media organization. That list of potential risks is long and intimidating. Associations that publish, post or tweet anything electronically might be sued for: libel, copyright infringement (reproducing content without permission), plagiarism, interference with contractual relations, harassment, emotional distress and invasion of privacy. And this is a short list.

• Adopt content standards that expressly prohibit negative or disparaging comments about individuals or entities. • Prohibit publication of any confidential or potentially embarrassing information — about owners, employees or anyone else — that might violate their privacy rights. “Never accuse anyone of anything in writing,” Marcus emphasizes. “Even if you are convinced the allegations are true, cyberspace is the last place you should air them.” • Post a disclaimer stating that the site is intended to encourage an open exchange of information, but that the views expressed do not represent the official position of the community association. • Assert the right of the board to remove comments that violate the standards for published comments and to deny access to individuals who fail to respect the terms of use. • Establish procedures for screening content before it is posted and for removing content deemed to be offensive, potentially libelous, or otherwise inconsistent with the usage standards.

risk of bringing it to the attention of other owners who might not have seen it.” Ignoring critical, nasty or even untrue cyber-comments is usually the best policy, but not always, Marcus agrees. If an owner is circulating information or misinformation that is upsetting other owners or potentially damaging to the community, then the board will have to respond. But the response should be in a letter to owners, Marcus advises — not a blog, a tweet or a Facebook comment — and it should be “short and restrained,” correcting misinformation, stating the position of the board, avoiding any direct mention or criticism of the “ranter” and encouraging owners to attend the next board meeting if they are concerned and want more information about the issue.

Proceed with Caution
As community associations become more reliant on Web-based communications, their interest in social media is likely to grow. While Marcus doesn’t advise communities to avoid these platforms, he does urge boards to approach them cautiously, considering the risks as well as the advantages. “There may be good reasons for your community to create a Facebook page,” he says, “but the fact that others have done so is not among them.” Boards that are planning to establish a social media site should review their insurance policies to determine what coverage they have, if any, and discuss their plans and social media policies with the association’s attorney. Whether dealing with Facebook, e-mail or Web-based communications of any kind, Marcus suggests, the same general advice applies: Think carefully before tweeting, blogging, posting or emailing any communication. “Comments made in cyberspace have the velocity of a bullet and the half-life of uranium,” he notes. “They travel quickly, can hang around for a very long time and have the potential to do great harm.” The best way to avoid liability for comments made on a Web site or social media platform, Marcus suggests: “Don’t post them, or allow them to be posted, in the first place.”

Responding to Attacks
While boards can (and should) reasonably control access to community-sponsored communications platforms and what is said on them, Marcus notes, “they have no control over what residents can say, tweet or blog on platforms of their own.” So, they have to consider the possibility that owners will use their personal platforms to make offensive or disparaging comments about board members individually or about the community as a whole. The urge to respond to every negative tweet and refute every critical blog is understandable, Marcus says, but usually unwise. “There is little to be gained by getting into a tweeting or blogging duel with owners,” he notes. “By responding in kind to an owner’s cyber-rant, board members sink to the ranter’s level and run the

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Condo Media - April 2011

Table of Contents for the Digital Edition of Condo Media - April 2011
