Handling Libel and Slander Within an Association

In an age of ever increasing communication and litigation, the old mother’s warning “watch your mouth!” is becoming an even more important lesson to heed. This is especially true in a condo association where so many different cultures, backgrounds, and personalities mingle. Condo associations are actually the perfect breeding ground for libel and slander lawsuits. These can be very costly and time-consuming. Here’s what you need to know to protect yourself.

Defining the Terms

What are libel and slander? They are essentially two types of defamation (communication which causes harm to someone’s character or livelihood). A good definition of the two terms from both a legal and insurance standpoint is found at thefreedictionary.com: “Two torts that involve the communication of false information about a person, a group, or an entity such as a corporation. Libel is any Defamation that can be seen, such as a writing, printing, effigy, movie, or statue. Slander is any defamation that is spoken and heard.” Defamation lawsuits, even if successfully defended, can drag on for a long time and become painful.

How Libel and Slander Often Occurs

Since libel is defamation that occurs in a written format, consider the increased opportunity that the internet provides for libel. Social media alone has provided a huge vehicle for libel. Other online resources are also causing unforeseen problems. For example, perhaps you post the notes of your board meetings to an online platform in the name of transparency. This might be a good way to keep everyone updated on happenings around the association, but it’s also a very good way to open yourself or your association up to a defamation suit. Additionally, the closeness and interdependence of residents in a condo association will give opportunity for many slanderous words.

How you Guard Against Libel and Slander

While there will always be disagreements, there are certainly ways to ensure that your association is less likely to become mired in lawsuits. As an association member, be sure to keep the following tips in mind:

• Review everything published by the association with a legal advisor.
• Libel is not limited to association email accounts, do not use your personal email for negative communication.
• Remember you are speaking on behalf of the association in all communication.
• Monitor any online communication closely.
• Make sure disputes are handled professionally and are not unnecessarily aired.

Following these tips will greatly reduce the likelihood for slander and libel to occur.

Insurance Coverage

Libel and slander claims are covered by the association’s liability policy, specifically the personal injury section. However, due to the nature of coverages and lawsuits, it can become more complicated. First, double-check that you are covered under a directors’ & officers (D&O) policy. Speak to your insurance agent to confirm that board members are covered individually.

In this day and age, it’s vital that each board member is protected against libel and slander. Review your current policies and needs with an expert at H&K Insurance. Make sure to contact us with any concerns you have. Our experienced team will be willing to answer any questions you might have as you deal with condo insurance coverages.