Update on POA Insurance and New Requirements for POA Common Grounds

Recently the POA insurance provider notified the Board that some of our practices for event vendors place Raintree in a position where our insurance would not cover Raintree and the Raintree owners would potentially be liable for any damages.   Obviously, this cannot happen and as a Raintree owner, why would you accept that?

Yesterday afternoon, the email at the bottom of this communication was shared with Raintree Events and Adventures as they have two upcoming events.  The Board even offered a meeting with the event organizers to work on solutions, instead a social media post was launched with incomplete information and comments that are plainly inaccurate.  This communication is to be transparent on the notification and the requirement for any vendor to be on any Raintree Common Grounds.

Please note, the Board has worked diligently with Raintree Events and Adventures to assist in them in hosting great events for Raintree.  Each event has been a new learning experience for all of us.  For example, we have waived the $50 charge for the vendors at last years Witches Night Out and the Luau.  Recently the Board passed a motion to allow Raintree Events and Adventures to use the Pavilion and Campgrounds at no cost for two events per year. This year the vendor fee is being allowed to remain with Raintree Events and Adventures to fund future events.  Some Board members have even personally provided donations for the events. 

To be abundantly clear…the Board did not initiate this action and the Board wants these events for Raintree as much as everyone else.  However, we will not go against the direction of the insurance provider and put Raintree and its owners in jeopardy.  One significant accident and Raintree is in financial ruins and life as you know it here drastically changes.  

The certificate of liability insurance requirement will extend to any rentals and usage of common ground by vendors.  We have some insurance companies we can share with vendors from which a vendor policy can be purchased for a day.  No vendor can be on common grounds as a guest of an owner.  This is not a cash grab as some have alluded to.  Raintree receives no money from a vendor policy.

The POA Board is just as unhappy as everyone else and we are looking for work-arounds that do not jeopardize our insurance.  The communication to Raintree Events and Adventures was a “heads up” and it would have been beneficial for the offered meeting to take place and even helped find a possible solution, instead of blowing up social media.

Here is the communication shared with Raintree Events and Adventures and the communication received from the POA insurance vendor.

Please note this communication is from the Board.

We received notification from the POA insurance provider that a waiver of liability will not cover Raintree for any vendors.  In any case of an issue with an event on common grounds, Raintree will be liable without a certificate of liability issued to Raintree.

Based on this, unfortunately the fire dancers cannot proceed without providing a certificate of liability.   On their prior performance a waiver of liability was utilized.  The Board  was advised this type of waiver provides no protection.     Additionally, all vendors for WNO must have the certificate of liability.  They cannot participate without one at the appropriate limits. This requirement will be necessary for any future events on Raintree common grounds.

We apologize for the late notice, but we just recently received the information.  Raintree Events and Adventures did nothing wrong.  No one did.  However, The Board cannot allow Raintree to get into a situation where the insurance is deemed invalid based on our actions or the policies get cancelled.

Please, going forward, absolutely no event communication takes place until the event form is completed and you receive a go ahead from the Board.

We are not trying to stop or dampen the great progress and events but we also cannot knowingly invalidate the insurance coverage. This places too much risk on all the owners of Raintree.

Most likely this stemmed from claims Raintree made for the porta potty and the pavilion roof.

The Board is very open to meeting with you to determine ways to work through this requirement.  Again, what Raintree E&A has done is phenomenal and we want to determine with you ways to continue.  Please let  John secretary@raintreepoa.net know if you would like to meet with the Board.

Thank you.

Below is the excerpt from Raintree’s insurance company.

I am writing because I have been made aware of activities being conducted on Raintree’s premises that have the potential for increasing the exposure to liability suits against Raintree POA.

Any entities including contractors and sub-associations that provide services or hold events on Raintree’s common property should at a minimum provide evidence of General Liability, Automobile Liability, and Employers Liability with limits of not less than $1,000,000. You should request a certificate of insurance evidencing such coverage with Raintree POA shown as the certificate holder. A suspense system should be set up to verify renewals of coverage upon the expiration date if services or activities are ongoing. Coverage should absolutely be in force at the time services or events are held on Raintree’s property. There should be no exceptions to this rule. If the entity does not own vehicles, hired and non-owned automobile liability will satisfy the Automobile Liability requirement. If personal motorized vehicles are involved, a system to verify liability coverage for these should be considered as well after seeking legal advice to assure such system is allowed in accordance with your governing documents. $500,000 liability may be considered for personal exposures.

If Raintree is aware of activities that are being conducted on their common premises that includes potentially high risk or illegal activities and takes no action to prohibit/address them, this will almost certainly increase their potential for being found liable.

The insurance market, especially for community associations, is volatile at best. Capacity is decreasing, cost and ultimate settlements for claims that do occur are increasing. Front end risk management is your responsibility and failure to proactively address concerns could result in fewer options for quality affordable coverage going forward.


Update on POA Insurance and New Requirements for POA Common Grounds
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