Managers who hold Community Association Institute (CAI) memberships can now save money on the premiums they pay for errors and omissions (E&O) insurance. Community managers who hold professional designations can save even more money—hundreds or even thousands of dollars a year.
These savings are available because CAI has entered into a partnership with Ian H. Graham Insurance to provide credits on E&O insurance coverage. The credits can substantially reduce annual E&O insurance premiums paid by individual community managers. The exact savings depend on client billings, liability limits and business location.
In the insurance industry, premium credits reduce the cost of coverage.
E&O insurance is professional liability coverage that protects companies and individuals in the event that a client holds them responsible for a service they provided, or failed to provide, that did not have the expected or promised results.
Ian H. Graham is giving CAI members a 5% premium credit for E&O insurance. The credits provide even greater discounts for managers who hold professional designations—up to 25% for managers who hold the Professional Community Association Manager (PCAM) designation. Managers who hold CAI's Association Management Specialist (AMS) get a 15% credit, while those holding the Certified Manager of Community Association (CMCA) credential get a 10% credit.
Awarded by the National Board of Certification for Community Association Managers (NBC-CAM), the CMCA is the first tier in the hierarchy of professional certification and designations for community association managers. The second tier is the AMS designation, while the PCAM is the third and highest professional designation for community managers.
"E&O coverage has become especially important protection in our increasingly litigious world," says Sylvia Tagle, senior vice president at Ian H. Graham. "And it's just as important for the individual community manager as it is for the management company. No matter how experienced, how diligent and how careful you are, you are just one mistake—or the perception of a mistake—from finding yourself on the wrong end of a law suit."
Tagle added that CAI membership, credentials and professional designations merit premium credits. "Our carrier believes you are a better risk if you're a member of your professional association, in this case CAI, and especially if you've earned professional credentials and designations. That's why we are offering premium credits to CAI members and those who hold an active CMCA, AMS or PCAM. Because you're a better risk, you deserve a better premium. It's that simple," Tagle says.
The following are three examples of the annual E&O premium credits now available to CAI members:
California manager, $1 million in yearly billings, $1 million coverage limit: * CAI member credit: 5%, or $283 in annual savings—more than two and a half times the annual cost of CAI membership. * CMCA credit: 10%, or $565. * AMS credit: 15%, or $848 * PCAM credit: 25%, or $1,413.
Florida manager, $600,000 in annual billings, $500,000 coverage limit: * CAI member credit: 5%, or $147 in annual savings. * CMCA credit: 10%, or $295. * AMS credit: 15%, or $442. * PCAM credit: 25%, or $737.
Colorado manager, $50,000 in annual billings, $1 million coverage limit: * CAI member credit: 5%, or $75 in annual savings. * CMCA credit: 10%, or $150. * AMS credit: 15%, or $225 * PCAM credit: 25%, or $376.
"This is a terrific offer to CAI members and yet another benefit of CAI membership for community managers and management companies," says CAI Chief Executive Officer Thomas M. Skiba, MBA, CAE. "We're pleased to continue our long-standing partnership with Ian H. Graham and especially pleased that this innovative insurance provider recognizes the value of CAI designations and the NBC-CAM credential."
For more information, call (800) 621-2324 or visit www.ihginsurance.com. Ian H. Graham has been serving the community association market for more than 25 years. Its insurance products, underwritten by CNA, include directors and officers liability, crime and fidelity and property manager errors and omissions.
CAI is a national membership organization dedicated to fostering vibrant, competent, harmonious common-interest communities. CAI and its 58 chapters provide education, tools and resources to the volunteers who govern communities and the professionals who support them. CAI's 28,500+ members include professional association managers, companies that specialize in community management, association volunteer leaders (homeowners) and other professionals who provide products and services to community associations.