Condo Media - December 2013 - 36

by Joel W. Meskin, Esq., CIRMS

INSURANCE

Risk Management
Best Practices Worksheet for Association Directors and Ofﬁcers

R

isk management is an important consideration for all
common interest communities and their associations.
The following is a detailed checklist
of community association business
practices that reflect good risk management procedures and protocols
that can help minimize the likelihood of claims against a board and
association.

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1. Has each board member read the
association bylaws?
2. Has each board member read
the covenant, conditions, and
restrictions?
3. Has each board member read all
the association rules and regulations?
4. Are board members prohibited
from handling issues individually
outside board meetings?
5. Have all board members
complied with board member
certification, if required by the
state?
6. Does the board outsource collections to a collection ﬁrm or law
ﬁrm?
7. Does the association have an annual audit of its ﬁnancials?
8. Does the board consult legal
counsel before terminating employees, if any?
9. Does the board seek legal
counsel before entering into a
contract of more than $5,000?
10. Does the board seek legal counsel before terminating a contract of more than $5,000?
11. Does the board only hire managers with licenses required by
the state, if any?
12. Does the board require that any
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managers hired have professional liability insurance?
13. Are all meetings open to all
owners, except if involving litigation and personnel issues?
14. Does the board maintain meeting minutes approved as to
form and content?
15. Does the board use Robert's
Rules of Order or other parliamentarian rules for meetings?
16. Does the board maintain copies
of all contracts?
17. Does the board maintain copies
of all insurance policies?
18. Does the board meet directly
with its insurance professional
at least annually?
19. Does the board have a reserve
study?
20. Does the board have a written
policy regarding the funding of
the reserve study?
21. Is the association a member of
the Community Association
Institute (CAI)?
22. Do any board members attend
CAI classes or other relevant
educational presentations?
23. Does the board have a written
procedure for unit owners to
share concerns?
24. Are board decisions issued in
the name of the board and not
individual board members?
25. Does the association use an accountant to handle its ﬁnancials?
26. Does at least one board member review actual bank statements each month?
27. If the association does not do
an annual audit, does it do a
review or compilation?
28. Does the board have a bidding

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process for contracts over a
certain price?
29. Does the board/association
have a disaster plan?
30. Has the board participated in
board training?
31. Does the board have a new
board member orientation
program?
32. Does the board require certiﬁcates of insurance directly from
the vendor's agent?
33. Does the board survey board
members annually to identify
association goals and priorities?
34. Does the board have an infrastructure plan (committee
initiatives and goals)?
35. Does the board have a FAQ
regarding association life that it
provides to prospective buyers?
36. Does the board have a procedure for welcoming new
residents?
37. Does the board have a succession plan or any idea how to
groom new community leaders?
38. Does the board review contracts
each year and meet with vendors to maximize performance?
39. Does the board have a written
conﬂict of interest policy in
place?
40. Do board members sign a community association board of
directors' code of ethics agreement? CM

Joel W. Meskin, Esq., CIRMS, is vice
president - Community Association
Insurance and Risk Management,
McGowan Program Administrators.
A CAI national corporate member,
Meskin is a frequent chapter speaker
and author.
Condo Media - December 2013

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