Today we discuss the 10th and final installment of
"The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance."
We thank Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services, for providing us this article and allowing ACM to share with our clients and followers on our ACM News Blog!
Question 10:
What does the
fidelity bond do?
Answer:
In short this crime
insurance coverage protects against the loss or theft of association
property or money by an “employee” or other covered person. For
example, if you found out a board member embezzled money from the
association this bond would protect against that loss.
What is important
to note with this coverage is who is covered. You want to make sure
that your “manager” is covered under the policy. The management
company may have their own insurance but you want to make sure you
cover all sides. The Maryland statute also requires that the manager
be covered so it is best to make sure they are covered by your policy
regardless it they may have their own protection.
It is also
important to note for Maryland associations that this is a
requirement and not a suggestion for most associations depending on
size. The limit suggested to meet the minimum requirement is the
less of:
Other items to
consider under the crime form are computer fraud, money and
securities, forgery and dishonesty.
We hope everyone found the insurance series to be informative and helpful! Please contact us with any other topics of interest you have and would like discussed on ACM's News Blog! You can reach our Marketing Coordinator by email - srolf@communitymanagers.net - with comments or suggestions.
