The condo manager’s tasks are numerous and so, his civil liability could be engaged. As a mandatary of the syndicate of co-owners, the manager is required to fulfill the terms of his mandate. The manager can incur his liability in two ways: first of all, he can incur his contractual civil liability towards the mandator; secondly he can incur his extracontractual civil liability towards the co-owners or a third party member who would suffer a prejudice as a result of a fault committed by the manager. In brief, it is essential that the manager concludes civil liability insurance for the duration of his service contract.
Civil liability
Any manager will have to answer for faults committed in the exercise of his functions and so, whether it concerns errors or omissions and regardless if they are voluntary or not; his liability could also be engaged, if he refuses or even neglects to fulfill his obligations. There are many reasons to institute a lawsuit against a manager; it can consist of a failure to take out adequate insurance coverage for the syndicate, a mismanagement of a loss and even a failure to monitor the various maintenance contracts of the syndicate with the different service providers.
Liability insurance
Although the law does not require the manager to have civil liability insurance coverage, this remains an important component of the contract and so, as much for the syndicate than the manager himself. When the board of directors signs a contract for services with a manager, it should include provisions obliging the manager to take civil liability insurance and to provide proof that the insurance is in force.
Professional liability insurance
If the manager is a member of a professional order such as the Quebec Order of chartered directors (Ordre des administrateurs agréés du Québec), he will normally be covered by professional liability insurance.
WHAT YOU SHOULD KNOW! If the manager is a volunteer co-owner or an employee of the co-ownership (condominium), the syndicate should conclude, at its own expense, specific liability insurance coverage for that person.
WHAT TO KEEP IN MIND: The civil liability of a manager may be invoked by the syndicate for non-compliance with one of the terms and the conditions of his contract.
WARNING! It is in the syndicate’s best interest to ensure that its manager has concluded civil liability insurance; therefore, it should contact the manager’s insurer to request a document by which the insurer certifies the existence, at the date of issue, of an insurance contract for the benefit of the insured covering any damage caused to a syndicate by the manager.
