Insurance is where a board discovers, at the worst possible moment, that it was covered for something other than what happened.
The four policies
Property insurance on the building and the common elements, usually written to a value set by an appraisal that has to be kept current.
General liability, for injury and damage the corporation is responsible for.
Directors and officers liability, which is what stands between a volunteer director and a personal claim.
Fidelity or crime coverage, for theft by someone with access to the corporation's money. On a self managed board this is the one most often too small.
The gap owners fall into
The corporation's policy covers the building to a defined standard. What an owner did inside their unit after that standard, and everything they own, is on the owner's own policy.
That gap is exactly where a burst pipe lands. A board that never explains it in writing will explain it individually, to each affected owner, during a claim.
The deductible is a budget item
A large deductible lowers the premium and moves risk onto the corporation's own cash. If the deductible is larger than the operating fund's working balance, the corporation has bought a premium saving it cannot actually absorb.
What a vendor certificate has to show
A certificate of insurance is not proof of much unless it shows the right insured, the right coverage limits, the right dates and the corporation named as an additional insured on the liability policy.
The additional insured endorsement is the part vendors most often omit and boards most often accept. Without it, the vendor's insurer has no obligation to the corporation.
Keep the certificates with expiry dates attached to the vendor record, and check them before the work starts rather than after the incident.