The Top 10 Association Insurance Questions - Final Installment!

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?   

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:
  • Three months’ worth of gross annual assessments and the total of all investment accounts; or
  • $3,000,000
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 - - with comments or suggestions.