By law, co-ownership syndicates are required to have liability insurance. This insurance is mandatory since the syndicate is responsible for damages caused to the co-owners or to third parties due to faulty design, construction or lack of maintenance of the common areas. A syndicate must therefore be insured to be able to assume all its civil obligations.
As with any liability insurance, this insurance covers the insured's defense costs and compensation for victims of damage. This insurance will also cover former directors if they are found liable.
In keeping with the general principles of "due care and diligence", it is in the best interests of the board of directors to carry directors' and officers' liability insurance, which is designed to insure the board members personally in the event that any of their decisions cause financial damage to a third party and that such damage is attributed to them.
The unit owner is, for his part, covered by his condo insurance (co-owner occupant) for civil liability, which is very practical in everyday life, for example if a fire breaks out in his deep fryer or if he forgets to turn off the faucet while running his bathtub and this causes damage to the neighbor.