Mexico D&O Liability Insurance
HOA Directors and Officers (D&O) Liability Insurance
Novamar México has designed and negotiated the HOA D&O policy in Mexico with the best protection for the HOA board members and the administration staff along with the top international and national insurance companies.
Best Protection for HOA Directors and Officers in Mexico
Serving on an HOA board means making decisions, and sometimes facing unexpected legal challenges.
Board of Directors’ decisions can create risks for third parties, especially homeowners who may sue board members and administrators, regardless of justification. Lawsuits often result in substantial expenses and serious legal consequences, including rare but possible jail time in extreme cases. This risk is increasing in Mexico, particularly in expat communities where foreign owners bring a more litigious culture. The exposure becomes even greater when contracts or agreements specify foreign “applicable legislation,” heightening the potential for claims against volunteer board members and professional administrators.
Helping HOA board members make decisions without putting their personal assets on the line.
The HOA Directors and Officers (D&O) Liability Insurance Policy, is specifically designed for board members and administrators of homeowner’s associations in Mexico, protects them against lawsuits arising from unintentional acts, errors, or omissions committed while performing their duties—including financial, administrative, and operational decisions that may harm third parties. Originally created by Novamar Mexico years ago, this policy is now widely adopted and purchased by HOAs in major resort and residential areas across the country.
By providing this essential coverage, HOAs experience a significant increase in the number of homeowners willing to volunteer for board positions, confident that their personal assets are safeguarded.
This specialized policy safeguards personal assets and supports the continuity of association operations during legal challenges.
Protecting the individuals behind your HOA—not just the association itself.
The Mexico HOA D&O (Directors and Officers) insurance policy provides individual protection to board members and administrators against lawsuits from homeowners or other third parties—coverage not included in the HOA’s general liability section of the Master Insurance Policy, which only defends the association as a legal entity (the “AC” in Mexico), not its individual volunteers.
In the event of a claim, the insurance company appoints a local attorney firm to handle the defense, with all legal fees covered by the insurer. These attorneys are familiar with applicable state laws.
We strongly recommend ensuring that the HOA’s legal documents—such as the articles of incorporation, bylaws, notarized annual assembly minutes, and other agreements—are properly legalized and kept up to date.
Contact Information
This unique and exclusive policy in the market, created by Novamar in Mexico, protects the Homeowners' Association Board and the Administration Staff for errors and omissions in case they are sued.
Legal expenses included: The insurance company will assign the lawyer who will act in your defense. With this product the insurance company (GMX Seguros) agrees to pay the compensation that the Insured owes to a third party as a consequence of the Professional Civil Liability coverage, the damages comprise the loss or impairment of the assets of the Insured clients (Condo owners) caused by malpractice, inexperience or negligence, and the deprivation of any consequential lawful gain to the loss or damage of such assets.
*This policy excludes the countries sanctioned by the OFAC (Office of Foreign Assets Control
With offices in the US and in Mexico, Novamar is always at your service.
Our Mexico office is fluent in English and Spanish, assuring a familiar voice when you need it most.
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