Leni Cummins discusses the personal liability risks that come with serving on a co-op or condo board in Habitat Magazine’s Habitat Weekly column. Key safeguards include a strong indemnification clause, which ensures board members are protected if sued, and Directors and Officers (D&O) insurance, which covers most claims except those involving willful misconduct. Co-ops benefit from New York’s Business Corporation Law, but this protection is limited unless reinforced with specific language in the bylaws. Condos, especially older ones, may have outdated indemnification clauses that need to be updated via a vote by unit owners. To ensure full protection, board members should confirm their D&O insurance includes individual coverage and aligns with indemnification clauses, and consider an umbrella policy for added security.

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