Effective June 1, 2015 there are two mandatory insurance coverage changes that will impact Condominiums in Illinois as follows:
Directors and Officers Coverage – The statute now requires Directors and Officers coverage to include, Defense for Non-Monetary Damages, Defense for Insurance Decisions and Defense of Contractual Liability. Coverage shall include as an insured: past, present and future board members while acting in their capacity as members of the board of directors; the managing agent; and employees of the board of directors and the managing agent. In order to comply with this requirement, boards should contact their insurance carrier to modify the association’s existing D & O coverage.
Ordinace or Law B & C Coverage – In addition to the D & O requirements, the 2015 statute requires Ordinacne or Law B & C Coverage to be a minium of $500,000.00 or 10% of the Total Insured Values, whichever is less. For those existing policies where B & C Coverage is less than
$500,000.00, this will require an endorsement request from your carrier to make the change.