If all homeowners have homeowners insurance does the association need to buy liability insurance?

In my homeowners association everyone owns their townhome and the land it is on. Homeowners are responsible for their own property maintenance. Even though all homeowners have their own homeowners insurance, our insurance company is advising that if someone gets hurt in say my driveway...that both myself AND the homeowners association can be sued. Therefore, we are being told that our association needs liability insurance that covers everyone's property (in additon to the common areas). Is this correct?