Checklist for Limiting Manager Liability Insurance

 □    Obtain Professional Liability Insurance (errors and omissions insurance)
 □    Obtain a Business Owners Policy (BOP)
 □    Obtain Commercial General Liability (CGL) Insurance
 □    Become (if possible) a named or additional insured on Association's Directors and Officers Liability Insurance
 □    Become named or additional insured on Association's CGL Insurance
 □    Obtain Fidelity Insurance

Management Agreement

 □    Clearly establish the relationship - independent contractor, agent, employee, etc.
 □    Clearly define responsibilities and scope of duties
 □    Require notice of breach and opportunity to "cure" before Association can terminate
 □    Require some from of ADR to resolve dispute
 □    Limit time for Association to bring suit for negligence or breach of any duty
 □    Require Association to allow manager access to records of Association in event of a claim
 □    Clearly define what Manager is not responsible for
 □    Terms of Agreement should be consistent with any limitations in Association's governing documents
 □    Clearly define who Manager is to take direction from        
 □    Provide for at least a yearly evaluation from Board
 □    Provide for a mechanism the permits communication directly with Membership if deemed appropriate by Manager
 □    Include an indemnification clause with a provision for attorney fees         
 □    Include a hold harmless provision which includes attorney fees 
 □    Include a covenant not to sue
 □    Include non-waiver and entire Agreement clauses           
 □    Clafify management company responsibilities upon termination
 □    Clarify ownership of records
 □    Include a survival clause for warranties, indemnifications, etc.

 Management Practices

 □    Document in writing all disagreements with Association
 □    Document in writing all action taken by Association against your advice
 □    Maintain complete and detailed log of all telephone calls received           
 □    Avoid all conflicts of interest and disclose and document those you can't avoid
 □    Encourage Association to get a yearly audit
 □    Do not comingle one Association's funds with another Association's funds         
 □    Encourage Association to develop a long-term replacement reserve program 
 □    Provide timely and accurate financial information to Association
 □    Know your limits; know when something is outside your expertise    
 □    Do not hold yourself out as an expert in areas you are not 
 □    Do not preform services outside of the scope of the Management Agreement
 □    Be familiar with Association's governing documents and state statutes           
 □    Obtain more education and training