Allen Wolff recently addressed insurance issues arising from the partial condominium collapse in Surfside, Florida." Read more in this Business Insurance article: https://bit.ly/371rCxN
“When you have a tragedy of this magnitude there’s going to be lawsuits flying left, right and center, there’s going to be insurance implications everywhere you turn on different kinds of coverage,” said Allen Wolff, a New York-based shareholder at Anderson Kill P.C.
Most condo association boards carry D&O insurance for management decisions, but typically the policy doesn’t cover bodily injury or property damage type claims, Mr. Wolff said.
“That doesn’t mean there wouldn’t be other losses that people would say are D&O-related, such as a finding there was financial mismanagement, failure to properly handle the business of the condo association such that work that should have been done wasn’t because they didn’t have the money,” he said.
The property policy may also provide business interruption coverage that would insure the lost profits that the property would generate if it is shuttered due to a covered cause of loss, Mr. Wolff said. “That is being litigated quite heavily with respect to COVID these days in those kinds of cases.”