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Maine Alliance for Road Associations

Liability Insurance Codes and Coverage

  • 07 Jul 2024 11:38 AM
    Message # 13379040

    I've searched the discussion forum regarding liability insurance. Some posts are more than 10 years old. I'm wondering if there is more current information. This is what I've found:

    The immunity the legislature provided is only for officers and directors carrying out the organizational processes of the association. It is not for road work. It does not protect officers or owners from liability for injuries due to improper road construction, maintenance or repairs.

    - Insurance companies use different coverage classification codes, e.g., #68500 & 73441 Townhouses & Condos, # 48727 Streets, Roads, Highways & Bridges. There's not a specific code for statutory road associations.

    - Typical coverage purchased is 1million each occurrence / 2million general aggregate.

    - Ad hoc road associations have the same immunity provided in the statute, but they cannot purchase liability insurance to cover injury.

    Is this still correct?

    What coverage & coverage classifications are recommended in 2024?

    My association has an insurance quote with coverage classification 68500 & 48727. We are individual properties and do not have a shared lot &/or building. Five or six lots of our 40 lots share access to a right-of-way. Those sharing the right-of-way have lake frontage.

  • 08 Jul 2024 6:19 PM
    Reply # 13379555 on 13379040

    This is the first time to read about the coding information with insurance companies. Thank you for this information. Regretfully, I do not have much of a way to offer much help.

    We had one insurance plan over 5 years ago that charged us about $5000! So researching options, thanks to MARA discussions, we were about to get insurance for about $2000. Of course the price goes up each year.

    We have 70+ owners for our statutory road association. Due to this large number, causes us to have a high cost for premiums. We have 2 types of insurances: one for Officers and Board members and the other for "homeowners association" AKA our common roads. 

    I hope we can have an insurance service that serves just statutory road associations and not be branded under other types that are more costly.

  • 09 Jul 2024 6:20 PM
    Reply # 13380040 on 13379040

    Can someone tell me how important liability insurance is for a small (12 owner) statutory road association?  What is the most likely problem to occur?  How much is a typical policy that would basically cover the Board and owners?


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