Even the most prudent director can make decisions in good faith which prove later to be ill-judged but ignorance is no defence in the eyes of the law. Directors' and officers' of residential management companies should be aware that they could potentially face unlimited personal liability without the protection of this affordable insurance.

Although directors' and officers' typically hold their positions as volunteers, and out of goodwill, the law recognises no fundamental difference between people running a residential management company and those running a large commercial enterprise. Directors can be held personally liable for the financial consequences of their actions and errors.

Managing a building is a time consuming task, even with the assistance of property managers. Any director willing to put in the time and effort deserves the protection that this affordable 'peace of mind' liability insurance can provide.

[1] 2 3 4 5 6