General Liability Insurance: Protecting Your Florida HOA from Accidents and Lawsuits

Let’s talk about what happens when something goes wrong in your HOA community.

A visitor trips on a raised sidewalk slab.
A child slips on the wet pool deck.
A vendor gets hurt working on HOA property.
Or maybe a tree in a common area falls on someone’s car.

Who’s responsible?
In many cases, your HOA is. And if you’re not properly insured, it can cost you big.

This is where General Liability (GL) Insurance comes in. It’s the foundation of your HOA’s risk financing strategy—and arguably the most important insurance policy your association can carry.

In this article, we’ll unpack:

• What general liability insurance actually covers
• Real Florida cases that show the financial impact of being underinsured
• Common accident and injury scenarios HOAs face
• Why GL is different from property or D&O coverage
• How much coverage your HOA really needs (hint: $1M may not be enough)
• Risk mitigation strategies that can reduce claims—and premiums

Let’s break down why this coverage isn’t optional and how to make sure your community is fully protected.

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🛡️ What Is General Liability Insurance?

General Liability Insurance protects your HOA against claims of bodily injury or property damage caused to others as a result of the association’s operations or negligence.

That means if someone:

• Slips, trips, or falls on common property
• Is injured while using community amenities (pool, tennis court, gym)
• Has their property damaged due to something on HOA-maintained land
• Files a lawsuit claiming the HOA was responsible for unsafe conditions

—your GL policy steps in to cover legal defense costs, medical bills, and settlement or judgment payouts.

GL = third-party liability. It doesn’t cover damage to HOA property (that’s what property insurance is for), and it doesn’t cover board mismanagement (that’s D&O).

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🤕 Common Claims Scenarios for Florida HOAs

Here are some real-life examples of liability exposures your HOA likely faces every day:

🏊 Pool Injury

A child cuts their foot on a broken tile in the pool area. The parents claim the HOA failed to maintain a safe environment and file a lawsuit. GL insurance helps cover medical bills and defense costs.

🚶 Sidewalk Trip

An elderly resident trips on a lifted sidewalk panel caused by tree roots. They suffer a hip fracture and sue the HOA. The GL policy responds—even if the HOA had no idea the hazard existed.

🌳 Tree Fall

A tree in a common area falls during a storm and crushes a visitor’s car. If it’s proven the tree was diseased and not removed in time, the HOA may be on the hook for repairs.

🐕 Dog Bite in Park

A homeowner’s guest is bitten by a dog in the HOA-maintained dog park. They claim inadequate signage and fencing contributed to the incident. The HOA’s GL policy responds even if the dog’s owner is also liable.

🛠️ Contractor Injury (No Workers’ Comp)

A contractor hired by the HOA falls off a ladder and doesn’t carry their own workers’ comp. The contractor sues the HOA for medical costs and lost wages. GL may respond—if not properly vetted, this could also turn into a workers’ comp issue.

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💼 Real Florida Case Study: $12 Million Liability Verdict

One Florida HOA was partially blamed in a $12 million judgment after a teenage driver ran a stop sign obscured by overgrown hedges owned by the association. The court found that the HOA’s failure to trim vegetation was a contributing factor in the fatal crash.

Even though the HOA didn’t cause the accident, their negligence in maintaining visibility made them liable.

Without sufficient GL limits, that HOA could have faced bankruptcy—and the remaining cost would have been passed to homeowners.

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⚖️ What GL Covers (And What It Doesn’t)

Covers	Does NOT Cover
Bodily injury to third parties	HOA-owned property damage (use property insurance)
Property damage to others	Board decisions or disputes (use D&O)
Medical payments for minor injuries	Volunteer injuries (use workers’ comp endorsement)
Legal defense costs	Cyber events or data breaches
Settlements & judgments	Claims involving criminal activity or fraud

Important: GL doesn’t cover internal disputes, like a homeowner suing over architectural enforcement. That’s a D&O claim (more on that in Part 5).

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📏 How Much Liability Coverage Do You Need?

Many Florida HOAs carry a standard $1 million per-occurrence GL limit. But is that enough?

In today’s environment of high jury awards and increasing medical costs, probably not.

Here’s what to consider when setting your limits:

• Size of your HOA: More residents = more exposure
• Type of amenities: Pools, lakes, gyms, and parks increase risk
• Foot traffic volume: More visitors = higher injury probability
• Litigation culture: Florida juries frequently award multi-million dollar settlements
• Contractor/vendor access: More workers = more injury risk
• Roads and signage: Private streets and intersections create vehicle liability exposure

🧠 A better practice? $2–5 million total liability protection, often split between GL and an umbrella policy (covered in Part 8).

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🧩 Key Policy Features to Look For

When reviewing your HOA’s general liability policy, look for these critical features:

✅ Broad Form Coverage

Includes liability for all operations, products, and completed work.

✅ Medical Payments

Pays small injury claims without a lawsuit—often $5,000 to $10,000 limit.

✅ Defense Outside Limits

Legal defense costs shouldn’t erode the policy limit. This is especially important in long, expensive cases.

✅ No Major Exclusions

Be cautious of exclusions for amenities, water features, or security services.

✅ Additional Insureds

Allows you to add vendors or property managers as insureds when needed.

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⚠️ Common Mistakes That Lead to Claims

HOAs often (unintentionally) create liability exposure through everyday oversights. Here are a few to watch out for:

• Inadequate maintenance: Failing to address known hazards like cracked sidewalks or leaning trees
• Poor signage: Missing or unclear rules in pool areas, gyms, or parking lots
• Unauthorized improvements: Unlicensed volunteers installing playgrounds or equipment without permits
• Security assumptions: Installing cameras or patrols but not maintaining them properly
• Vendor mismanagement: Hiring uninsured or underinsured contractors

Even the best-run HOAs make mistakes. That’s why general liability insurance is non-negotiable.

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🔧 Preventative Measures That Lower Risk (and Premiums)

A good insurance program is only one piece of the puzzle. Combine it with proactive safety measures to reduce both claims and costs:

🧹 Regular Inspections

Create a schedule to inspect sidewalks, lighting, fencing, and amenities.

🗂️ Document Everything

Keep records of maintenance logs, incident reports, and vendor agreements.

🚧 Post Clear Rules

Amenities should have visible rules and age restrictions where appropriate.

📜 Require Vendor Certificates

Always request proof of insurance before hiring any vendor.

🧑‍🏫 Educate Homeowners

Remind residents about speed limits, leash rules, and maintenance protocols.

These steps may even earn discounts from your insurance carrier—and they show residents you’re actively managing risk.

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📄 Pro Tip: Combine with Umbrella for Extra Protection

GL policies typically max out at $1 million per occurrence. But what if you’re sued for $3 million?

That’s where a commercial umbrella policy comes in. It provides extra layers of coverage over your GL, D&O, and auto policies (if applicable).

We’ll dive deep into umbrella insurance in Part 8—but if your HOA doesn’t already have one, it’s worth the conversation now.

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🔚 What’s at Stake Without GL Coverage?

Let’s say your HOA doesn’t carry general liability insurance, or carries limits that are too low.

Here’s what could happen:

• You’re sued for an injury and must defend the HOA out-of-pocket
• You settle for hundreds of thousands (or millions), draining reserves
• The board issues a special assessment to homeowners
• Homeowners protest, refuse to pay, or even sue the board
• Your community’s reputation suffers, and property values decline

This is not an exaggeration—it’s reality for dozens of HOAs in Florida each year.

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✅ Key Takeaways

• General liability insurance is the backbone of any HOA risk management plan
• It covers third-party injury and property damage claims tied to the HOA’s operations
• Florida HOAs face unique risks due to weather, litigation, and active communities
• $1M per occurrence may be too low—higher limits and umbrellas are often needed
• Proactive risk management can lower claim frequency and insurance costs
• GL coverage protects your community, your budget, and your board

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📝 Ready to Review Your Policy?

Don’t wait until someone slips by the pool or trips on a broken sidewalk. Florida Risk Partners is here to help you understand your general liability risks and quote a policy that fits your community’s size, amenities, and budget.

➡️ Request a quote today through our 24/7/365 online platform. No meetings, no phone tag—just fast, expert help when you need it.

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🔜 Coming Next Week

In Part 4 of our blog series, we’ll cover Property Insurance for Florida HOAs—including what’s covered (and what’s not), how hurricane deductibles work, and how to avoid underinsuring your clubhouse, pool, and other valuable assets.