This article was co-authored by Crishana Loritsch, CMCA, AMS, PCAM and Deborah Carter and first appeared on Quorom Magazine, the award-winning premier publication of the Washington Metropolitan Chapter Community Associations Institute.
Growing up, we are confident that most of our readers have heard the expression, “It’s all fun and games until…” and it typically ended with something less than ideal occurring because of our actions.
It was also something that we thought was said, especially by our parents, to prevent us from having fun. This may be true, to a certain extent, however, it does not mean that there was no truth in the statement. Rather, as we point out further in this article, this adage is something that we in the community association management space need to bear in mind as we navigate the summer season as our community residents and their guests enjoy our common areas and open spaces.
What you will learn:
- Reducing the risk of slip/fall accidents/injury
- Understand liqour liability at social events
- Mitigating property damage in spring/summer
- Avoiding legal violations at community events
- Reduce risk of lawsuits against the association
Someone Trips and Falls
Longer daylight hours and warmer temperatures provide an excellent opportunity to repair and/or replace sidewalks and walking trails in your community. Conduct regular inspections, preferably in the late winter/early spring months, noting areas that require attention and then schedule accordingly.
Proactive inspections allow you to analyze and prioritize risks, evaluating and identifying those risks that require immediate attention. Don’t wait for a reported trip and fall to trigger your response.
Proper preventive maintenance is critical in mitigating potential liability. In addition to regular inspections performed by management and staff, most insurance carriers will perform a risk assessment of your property and make recommendations.
Someone Has a Little Too Much Fun at the Community Social
Social events are a sure-fire way to instill a sense of community within your residents, but they are not without potential pitfalls, especially if the HOA serves food and/or alcohol.
Liquor liability is a serious consideration and a very real risk as the association could be held liable in the event something goes awry and let’s face it, when alcohol is involved, the probability increases. People can say and do all sorts of things when they are inebriated.
Additionally, there is a higher risk of physical injury when alcohol is involved. Consult with counsel and your insurance provider to ensure you adhere to any licensing requirements and proper insurance coverage is in place. If the association hires an outside vendor, careful consideration should be given to ensure the vendor has all proper licenses, insurance and permits.
Additionally, as with any agreement or contract, the association’s legal counsel should review all documentation to ensure that the association’s interests are protected, and copies of said documentation should be reviewed by your insurance professionals to ensure that there are no provisions contained therein that would expose the association to increased liability.
Someone’s Property Is Damaged
Warmer months mean there can be lots of activity within your communities and as such, a homeowner’s personal property may be damaged. In certain cases, the association may be held liable if the damages resulted from the association’s property or maintenance obligations.
Proper communication with your residents regarding maintenance projects, contractor operations on the property and expectations of residents when they are out using and enjoying the property when contractors are present, is critical to things going as planned with minimum disruption.
You Violate the Law
Many associations host movie or TV nights in their clubhouse or other common areas. This can be a great way to bolster a sense of community. Pool parties are also popular or even live performances.
These are all activities that can be enjoyed by members of the community, providing an opportunity for neighbors to get to know one another. What could go wrong? Before planning such an event, research the requirements for complying with copyright laws. You most likely need to obtain a license to show a movie to your residents. The use of music or television may also require a license.
There are exceptions to licensing requirements, which may apply to an association. Therefore, it is important to fully understand what is required. Failure to properly research and plan your event could have a financial impact on your association as copyright infringement can result in significant fines.
What about a casino night? That could be fun. Or, how about a weekly bingo night in the clubhouse? Surely, these are “safe” activities, right? Not necessarily. Again, research is required to determine the gambling laws in your state.
The Association Gets Sued
When someone is injured while on association property, an owner’s property is damaged as a result of something the association is responsible for or someone files suit against the association, these incidents are claims against the association’s insurance policy.
While insurance is something everyone should have, it is also something we hope we never need to use. There are many factors that can affect insurance premiums and availability, but an association’s claims history is one factor you can try to control by reducing risks.
When planning events and activities for the community, it is incumbent upon board members to not only consider the fun and games, but to also consider the risks. Board members must be familiar with the governing documents and applicable statutes. More importantly, know when to seek advice from the association’s counsel and insurance agent.
We all want to see residents enjoying these amenities and participating in community events and activities. With proper maintenance, preparation, research and planning, everyone can enjoy the fun and games.
