General liability insurance protects your association against claims alleging bodily injury or property damage arising from the ownership, maintenance, or use of common areas. Someone slips on the pool deck. A child is injured on playground equipment. A visitor trips on a cracked sidewalk. A falling tree branch damages a resident’s vehicle in the parking area.
These aren’t hypothetical scenarios — they’re the most common claims filed against community associations nationwide.
What GL typically covers
Bodily injury claims (medical expenses, pain and suffering, lost wages) and property damage claims by third parties arising from conditions on association property. It also typically includes personal and advertising injury coverage (defamation, libel, slander — which can come up in association governance disputes) and medical payments coverage (small medical bills paid regardless of fault to prevent them from becoming lawsuits).
How much coverage do you need?
Most association GL policies carry $1M per occurrence / $2M aggregate limits. Whether that’s adequate depends on your community’s exposure profile — a 300-unit high-rise with a pool, gym, and parking garage has dramatically different liability exposure than a 30-unit townhome community with minimal common areas.
Check your governing documents. Many declarations and bylaws specify minimum liability coverage limits. Your association’s umbrella or excess policy sits on top of your GL limits, so the two should be evaluated together.
Common issues
Additional insured requirements
If your association hires contractors for common area work, your contract should require them to name the association as an additional insured on their GL policy. This gives the association direct rights under the contractor’s policy if their work causes injury or damage. Many associations have this language in their vendor contracts but never verify the certificates.
Assault and battery exclusions
Standard GL policies often exclude claims arising from assault and battery. In communities with security concerns, this exclusion can leave a significant gap. If an incident occurs in a common area, the association may face a negligent security claim with no GL coverage to respond.
Sexual abuse and molestation coverage
For associations with amenities used by children — pools, playgrounds, recreation rooms, camps — this coverage responds to the most serious claims an association can face. It’s not standard on every GL policy. Boards should verify it’s included.
Hired and non-owned auto
If association employees or board members drive personal vehicles for association business (picking up supplies, inspecting properties), the association needs hired and non-owned auto coverage. Your GL policy may or may not include it.
Common Elements will handle general liability placements for community associations when we launch. Join our waitlist for launch updates and educational resources.