Commercial General Liability Limit
What this clause says
The Association shall maintain commercial general liability insurance covering the common elements and Association operations, with limits of not less than one million dollars per occurrence, insuring against claims for bodily injury, death, and property damage arising out of a single occurrence.
What this means in plain English
Commercial general liability covers the association against bodily injury and property damage claims arising from the common areas and its operations, such as a slip and fall at the pool or a trip on a common walkway. The Fannie Mae Selling Guide requires a general liability policy for the project covering the common elements, commonly written at $1M to $2M with excess or umbrella layered above. This is separate from D&O (governance claims) and from the property coverage (damage to the buildings themselves).
What it means for an HOA board
General liability is table stakes, but the limit is often left at a decades-old floor while the community, its amenities, and jury awards have grown. A single serious claim at an amenity can exhaust a thin primary limit and reach the umbrella, or worse, reach a special assessment. Confirm the per-occurrence and aggregate limits, that all common-area amenities are scheduled, and layer an umbrella over the primary rather than buying a high primary limit outright, which is usually the more efficient structure.
Program notes
Primary GL limits above the common floor cost less bought as umbrella capacity than as a higher primary. Structure matters as much as the headline number.
How this evaluates
The Policy Checker applies these rules in order; the first match wins.
gl limit is at least $1M -> Compliant: A per-occurrence limit at or above one million dollars meets the common lender floor. Confirm an umbrella sits above it for amenity-heavy communities. gl limit is at least $1 -> Borderline: General liability is present but below the usual one-million-dollar per-occurrence floor. Confirm the limit against the community amenities and lender requirement.
See this in your policy
Check this clause against your master policy.
Run the Policy Checker