Directors liability insurance vve
As a homeowners' association director, you can be held personally liable for management errors. Protect your private assets with director's liability insurance. Also covered: mistakes made by fellow drivers!
🛡️ Premium indication 2025
Joint and several liability: You are personally liable!
As a homeowners' association director, you are: jointly and severally liable for administrative errors. This means that if one driver makes a mistake, all directors personally liable can be stated. Your private assets are at stake – even if you are a volunteer! Claims can amount to tens of thousands of euros.
Directors liability insurance vve
The director's liability insurance (BTA) protects the private assets of homeowners' association directors against claims due to management errors. As a director you make important decisions - sometimes they unintentionally turn out wrong.
The insurance covers financial damage due to errors, negligence or improper management. Also the defense costs are covered, even if the claim turns out to be unfounded!
Directors can be held liable for: improper management: wrong decisions, negligence, or failure to comply with legal obligations.
Consider: no MJOP, inadequate reserve fund, poor financial administration, uncontrolled emergency lighting, deferred maintenance resulting in damage.
Who Is Insured?
All persons who fulfill an administrative role within the VvE.
directors
All appointed board members, both paid and voluntary
Supervisors
Commissioners and members of the audit committee
Co-policymakers
Persons who (co-)determine the policy
Chairman AGM
Chairman of the meeting of owners (for management tasks)
Former Directors
Former directors for mistakes during their duties
Liquidators
Upon dissolution of the VvE
Professional manager with management duties
Administrator
If it also carries out management tasks
Three Types of Liability
The insurance covers internal, external and mutual liability.
🏠 Internal Liability
You will be held liable by the HOA itself or by members of the homeowners' association. For example, in the event of financial damage due to an incorrect decision by the board.
🌍 External Liability
You will be held liable by third parties outside the VvE: contractors, suppliers, the municipality or other external parties who suffer damage.
👥 Mutual Liability
You will be held liable by a co-director. For example, if you make a mistake that causes another driver to suffer damage.
Practical examples
Situations in which directors can be held liable.
🏗️ Postponed roof maintenance
The board is postponing roof repairs to save costs. The next storm will cause serious leakage and water damage in several apartments. Residents hold the board accountable.
Repair costs €45,000 + consequential damage to apartments
💰 Down payment to Bankrupt Contractor
The board makes a large down payment to a painting company for facade renovation. The company goes bankrupt before work begins. The €25,000 deposit is gone.
Lost deposit €25,000 + additional costs for new contractor
The VvE does not have a multi-year maintenance plan. As a result, necessary maintenance is not planned and overdue maintenance occurs. The value of the apartments is falling.
Depreciation in value of apartments + overdue maintenance
The emergency lighting in the storage room does not work. A resident falls in the dark and is seriously injured. The problem had been reported several times but not resolved.
Personal injury + damages: potentially €50,000+
The treasurer has been transferring money to his own accounts for a long time. The board should have discovered this earlier through better monitoring. The VvE holds all directors liable.
Embezzled amount + costs of investigation and procedures
Due to an error in the annual accounts, excessive payments are made to suppliers. A financial deficit arises for which members must contribute extra.
Financial deficit + additional member contribution
📋 What's Covered?
The director's liability insurance offers extensive protection.
Financial damage due to management errors, negligence or improper management. Damage to the homeowners' association, members or third parties.
Costs for legal assistance and defense against claims, even if the claim turns out to be unfounded. Often unlimited!
Court fees, bailiff costs and costs of legal proceedings.
Claims for errors made before effective date (default 3 years, if not known).
Costs to prevent or limit damage after an error has been discovered.
Costs to restore your good name after an unjustified claim or accusation.
Know what the director's liability insurance does and does not cover.
- ✓ Financial damage due to management errors
- ✓ Negligence or improper management
- ✓ Internal liability (to homeowners' association/members)
- ✓ External liability (to third parties)
- ✓ Mutual liability (co-directors)
- ✓ Defense costs (also for unfounded claims)
- ✓ Walk-in coverage (errors before effective date)
- ✓ Former directors for mistakes during their duties
- ✓ Rescue costs
- ✓ Rehabilitation costs
✗ Not Covered
- ✗ Intentionally caused damage
- ✗ Fraud by the insured himself
- ✗ Criminal offences
- ✗ Fines and penalties from the government
- ✗ Personal injury (injury)
- ✗ Property damage (physical damage to property)
- ✗ Known claims at closing
- ✗ Foreseeable errors at shutdown
- ✗ VvE without reserve fund (art. 5:126 BW)
- ✗ Private disputes outside a board position
Claims can come for old errors or after termination of your position.
You may be held liable after the effective date for a mistake you made before the effective date. It's called this walk-in risk. Most insurers cover this for 3 years as standard.
After termination of your management position or insurance, you can still be held liable for past mistakes. Of run-out cover you are still protected.
Since July 1, 2021 all homeowners' associations must comply with the Management and Supervision of Legal Entities Act (WBTR). This law is intended to prevent mismanagement, irresponsible financial management and abuse of position.
The WBTR makes it easier for drivers personally liable to set. This increases the importance of good director's liability insurance!
Why Choose Us?
Extensive experience with directors' liability specifically for homeowners' associations.
Your personal belongings will not be affected by claims.
Standard coverage for errors before effective date.
Legal assistance also for unfounded claims.
Current and former directors, supervisors and policymakers.
Combine with buildings, liability and legal assistance.
We compare several insurers for the best coverage.
More than 50 years of experience in homeowners' association insurance.
Compare the best director's liability insurance policies now. No deductible!
