Condo associations occupy a position of trust in our communities, as the collective bodies responsible for maintaining building exteriors and common areas for owners in the building or condominium complex. They need to be trustworthy and trusted, but unfortunately, those are two different things, and there is often a gap between them. The right fidelity coverage for condo associations will go a long way toward demonstrating that trustworthiness, though. It also protects your association against individual bad faith actors who may occupy positions of trust now or in the future. There are a variety of ways to set up this coverage, including insurance policies and bonds.
How Much Coverage Do You Need?
According to https://www.atminsurance.com/, the coverage a condo association needs to maintain should be equal to the funds available during the coverage period, and that amount can fluctuate with membership and votes to initiate upgrades and other projects. As such, your association should review its coverage every year, increasing or decreasing it as needed to remain cost-efficient without significant areas of exposure. Condo association fidelity coverage protects you from embezzlement and other forms of fund misuse, and it needs to include both board officers with access to funds and private management companies contracted to handle the day to day financial affairs of your association if it is going to be effective.