Director Personal Liability After a Bad Assessment or Insurance Decision

A courtroom scene with an empty judge’s bench, flags, and attorneys at tables preparing for a case involving director personal liability and a bad assessment.

Directors face personal liability claims when reserves were ignored or insurance lapsed. Corporations Code 7231 and Civil Code 5800 protect good-faith decisions with reasonable inquiry, but D&O coverage has limits and exclusions. Documented process matters.

FDIC Limits and HOA Reserves: Why Parking $700,000 at One Bank Can Put Directors on the Hook

A man carrying a folder walks out of the Rivertown Bank building, which houses SLPM association management services, while looking at his smartphone.

East Bay HOA directors who leave large reserve balances at one bank risk uninsured losses above the $250,000 FDIC limit. A bank failure can force a special assessment and raise personal-liability questions under the duty of care.

Director Personal Liability After a Bad Assessment or Insurance Decision

FDIC Limits and HOA Reserves: Why Parking $700,000 at One Bank Can Put Directors on the Hook

SLPM HOA Management