At the 2025 MARA Conference, Attorneys Mary Denison and Jim Katsiafiakas recommended that Statutory Road Associations consider adding indemnity protection provided by becoming a mutual benefit Non-Profit Corporation.

I recently asked Attorney Denison to use the example of my local Statutory RA composed of 10 parcels on a private section of gravel road that she helped us form in 2016. We are considering doing this.

Our Road Association currently has an Insurance policy with Hub International that provides general liability coverage ($2,000,000 Aggregate Limit) and Directors and Officers Indemnity ($1,000,000 Each Wrongful Act; $2,000,000 Aggregate Limit).

QUESTION: Does the above coverage generally seem appropriate to you? If our RA becomes a Non-Profit Corporation, would the indemnity protection provided by Incorporating be worth the additional complexity and expense? Do you think we should discontinue the D & O Indemnity of our current policy?

I thought her answer might be of interest to MARA Members:

ANSWER FROM ATTORNEY DENISON: I think you are currently well-insured and well-protected. You do not need the redundancy of a nonprofit corp in my opinion. If your organization needs to own common real estate or own the roadbed, then it would be appropriate at that time to form a new nonprofit.

I do think you should keep your D&O in place as it provides an additional incentive for other neighbors to serve as officers.