Cohousing-L Mailing List: RE: Limited liability

[Rob Sandelin (Exchange) (Robsan]

In our state law you can create indemnity for corporate officers so that =
they are only personally liable under proven negligence.  State laws =
vary, check with your local attorney.

One key issue that relates to this is your insurance coverage.  One =
example I have used before is that in some places if you do not annually =
inspect your playground equipment, and document that inspection, and a =
swing fails and someone gets hurt, the insurance company can get a =
negligence ruling, then not cover any  claims, leaving the organization =
to have to cover the injury and damage claims with its own assets.

So, when you get an insurance policy to cover your organizational =
liability be sure to understand the fine print of what is covered, how =
they define negligence, and what is required of the insurer if they want =
to withhold coverage. Be very clear who is holding liability during =
construction, as this is obviously a major source of potential claims.   =
My advise is when you option your land, get insurance to go with it, =
then upgrade your insurance as you need to.  Most reputable agents will =
give you advise about the coverage.  Some kid falls out of tree on your =
optioned land your organization may be liable.

Rob Sandelin
Sharingwood
Where the roof on the commonhouse gets started tomorrow, the entrance is =
being planted, and the kids play in the pool.