How do you protect your association against theft of funds by the dishonest acts of your employees or management company? The purchase of a Fidelity Bond is usually required by your governing documents and in most case, required by your state.
Insurance carriers refer to this policy by many names: fidelity bond, employee dishonesty, crime coverage, to name a few. They all provide the fidelity coverage that your association is required to carry, as long as the proper endorsements are included in the policy.
Most states require the governing bodies of cooperative housing, condominium and homeowners associations to purchase fidelity insurance. The amount of the Fidelity Bond required is the lesser of:
|3 months’ worth of gross common charges and the total amount held in all investment accounts at the time the bond is issued||OR||$3,000.00|
Connie Phillips Insurance has several top rated carriers that will write Crime/Fidelity Bond coverage for condominium and homeowners associations. The management company can be added with the same employee theft limit as the association.
Some of the policy features include:
- Coverage for the board and association employees (Directors & Officers Liability Insurance)
- Employee theft coverage added by endorsement for the Property Management Company
- Computer & funds transfer fraud
- Theft, disappearance & destruction
Connie Phillips Insurance has all the options you need, so you should work with a provider who can access the resources and carriers that will provide you with the proper protection.
If you’d like to talk about your coverage situation in more detail, stop by one of our offices in Frederick, Maryland or Virginia Beach, Virginia or reach us by phone at 888-439-0479. You can also easily get a comparative rate quote by filling out our web form. We’ll find you great coverage so that you can keep the focus on your responsibilities.