During a party in 2003 in a Chicago apartment building, an overcrowded deck collapsed and killed thirteen people. Ten years later litigation is still playing out, the most recent development involving the building’s insurance company. The disagreement is over whether the collapse was a single “occurrence” or multiple “occurrences”. The policy the building carrier provided $1M in liability per occurrence, with a $2M maximum limit per policy year.
The insurer, First Specialty, won the argument to limit their payments to $1M. Although the building owner was able to settle early, it is still possible for the owner to be help personally liable if insurance limits are not adequate.
Umbrella insurance provides excess coverage above the standard primary condo limits and is relatively inexpensive. AssociationProtection.com recommends all clients explore these extra limits.