Sample Request for Manager's Liability Insurance

What Is a Manager Liable For?

Under Article 38 of the Condominium Law, a manager is liable to the owners exactly as an agent. That means performing the role with care and taking the necessary measures.

The liability is personal and can extend to the manager's own assets. The grounds most often encountered in practice are:

• Failing to remedy a dangerous condition in common areas, leading to an accident
• Neglecting lift maintenance and periodic inspection
• Failing to put fire safety measures in place
• Employing staff without social security registration
• Failing to render an account
• Not using collected funds properly
• Loss growing because an essential repair was delayed

Intent Versus Negligence

Liability insurance is designed to cover loss arising from negligence or error in performing the role. Deliberate acts, personal enrichment and criminal conduct fall outside the cover.

The insurance is therefore a safeguard against loss caused by carelessness; it does not protect bad faith. Explaining this distinction to the owners avoids misunderstanding during the decision.

Is the Insurance Compulsory?

Manager's liability insurance is not required by law; it is optional cover. The risk is nonetheless high in buildings with many units, lifts and employed staff.

Because the premium is shared as a common expense, taking out a policy should rest on an assembly resolution. A manager may also pay for a policy personally, but the common practice is to make it a common expense by resolution.

Copyable Request Letter Sample

……………………… APARTMENT / COMPLEX

TO THE CHAIR OF THE GENERAL ASSEMBLY

Subject: My request that manager's liability insurance be taken out.

I am the owner of independent unit no. …… in ……………………… Apartment/Complex / I have served as manager since the resolution dated …/…/20….

Under Article 38 of the Condominium Law, a manager is liable to the owners exactly as an agent. That liability is personal and can extend to the manager's own assets for loss caused by negligence or error in performing the role.

The risk is high in our building because ……………………… (there are …… units / a lift is operated / staff are employed / there are social facilities).

I therefore request:

1. That quotations be obtained from at least three insurers for liability cover for the manager and any auditor,

2. That the proposed policies, with their scope of cover and cost, be placed on the assembly agenda,

3. That the policy cover loss that may be caused to third parties and to owners through negligence or error in performing the role,

4. That the premium be included in the operating budget as a common expense.

I submit the above for your consideration. …/…/20…

Full Name: ………………………    Unit No: ……    Signature: ………

Copyable Assembly Resolution Sample

……………………… APARTMENT / COMPLEX

GENERAL ASSEMBLY RESOLUTION

Resolution No: ……    Date: …/…/20…

Agenda item: Taking out manager's liability insurance.

RESOLVED: Having regard to the manager's liability under Article 38 of the Condominium Law, liability insurance shall be taken out against loss that may arise in performing the role.

1. The policy shall be issued by ……………………… Insurance at an annual premium of ………… TRY.

2. Scope of cover:
– Financial liability arising from negligence or error in performing the role: ………… TRY
– Loss caused to third parties: ………… TRY
– Defence and legal costs: ………… TRY

3. The policy shall be issued for ……………………… (the manager only / the manager and the auditor / members of the management board).

4. Policy period: …/…/20… – …/…/20…, and the manager is authorised to renew it before each expiry.

5. The premium shall be allocated among the owners in proportion to land shares pursuant to clause …… of the management plan and entered as a separate item in the operating budget.

6. It is recorded that deliberate acts and acts aimed at personal gain fall outside the policy, and that the insurance does not remove the manager's duty to render an account.

The resolution was adopted with ……… votes in favour and ……… against.

Chair ……………… Signature    Secretary ……………… Signature

Filling Guide

State the sums insured in the resolution. A policy with low limits is useless in a serious incident.

Specify who is covered. If a management board and an auditor also serve, the policy should extend to them.

Record the exclusion for deliberate acts. Stating in writing that the insurance does not remove the duty to account prevents misunderstanding among the owners.

What Insurance Does Not Replace

Liability insurance does not replace regular maintenance and record-keeping. If lift inspections, extinguisher servicing or water tank cleaning have not been carried out, the insurer may decline the claim or seek recourse.

A manager's strongest protection is documenting their actions: resolutions, quotations and contracts, maintenance forms, incident records and bank statements should all be kept in order.

Common Mistakes

• Treating insurance as a substitute for maintenance: neglected maintenance undermines cover.
• Not stating sums insured: nominal policies are of no use.
• Excluding the auditor: auditors carry liability too.
• Taking out a policy without a resolution: treating the premium as a common expense becomes contentious.
• Not tracking renewal: an expired policy gives no protection.

This content and these templates are for information only and are examples. Cover varies by policy; examine the exclusions carefully when obtaining quotations.