Does the Board’s Directors and Officers Liability Insurance cover the cost of repairing construction defects if the Board does nothing?

Directors and officers liability coverage or DNO coverage as it’s often referred to does not cover construction defects. There will be a specific exclusion in that policy so that the cost of the premiums for that policy remain reasonable. If the DNO carrier had to pay to fix construction defects the amount of the premiums would be much greater than they are. The bottom line though is that there will be an exclusion in the DNO policy for claims regarding construction defects.