Co-op boards are legally obligated to treat shareholders equally, but there may be specific circumstances under which one shareholder’s liability insurance rates increase, our experts say.
Liability insurance protects renters and owners in the event that their property is lost or damaged. It also provides protection if someone is injured in their home, if they are responsible for damaging the property of others, or if something happens in their apartment that forces them to relocate.
“A co-op board cannot place a heavier burden on new shareholders requiring them to obtain higher insurance coverage than existing shareholders. It would effectively create different classes of shareholders,” says Lauren Tobin, an attorney with Woods Lonergan PLLC (a Brick sponsor).
About the Author
James Woods, Managing Partner of Woods Lonergan, holds more than 25 years of experience in corporate, real estate, and business legal matters. His expertise in handling negotiations, litigation, jury trials, and all forms of alternative dispute resolution spans multiple areas, including corporate, real estate, and commercial litigation. James actively represents dozens of Cooperative and Condominium Boards and serves as counsel to many Corporate Boards. Prior to founding the firm, James proudly served as an Assistant District Attorney for Nassau County and handled both jury and bench trials. With experience that also covers sophisticated transactions and complex acquisitions, James also serves as counsel to several domestic companies in a range of industries and commercial arenas, including real estate, insurance, banking, transportation, and construction. If you have any questions about this article you can contact attorney James Woods through his biography page.