Directors' liabilityVvE

As an association administrator, you have an important task. You are responsible for drawing up and implementing a multi-year maintenance plan, you must ensure that the association's coffers are sufficiently filled, and you must also take all kinds of legal regulations into account. Unfortunately, the decisions you make can also have a negative impact. For example, if the painter you hired on behalf of the Owners' Association cannot be paid because there is not enough money in the coffers. Or if the contractor who was to perform a renovation turns out to be bankrupt after a substantial down payment. Or when a balcony collapses because a necessary renovation was not carried out or not on time.

Directors' liability insurance

In such situations, the VvE can be held liable. However, if you, the VvE administrator, have made a mistake or have been negligent in the performance of your duties, you are also personally liable for any damages. Private liability insurance or association liability insurance does not cover a claim due to improper management. Therefore, it is advisable to purchase directors' liability insurance. 

This insurance protects the private assets of VvE directors in the event of claims based on improper or negligent acts of those directors. The policy also covers defense costs. However, directors' liability insurance does not cover all damages caused by a director. If a director intentionally acts unlawfully, then coverage is excluded.