What is fidelity insurance?
Fidelity insurance, also called a fidelity bond, protects an HOA against financial loss from dishonest acts, fraud, theft, embezzlement, committed by board members, employees, or anyone else who handles the association’s money.
Why does fidelity insurance matter?
Volunteer boards handle real money with surprisingly little oversight compared to a traditional business, which makes fidelity insurance one of the more important, and most overlooked, protections a community can have. It’s not about assuming the worst of anyone on the board; it’s about making sure one bad actor can’t quietly drain the reserve fund.
When You’ll Run Into This
This usually comes up during the HOA’s broader insurance review, alongside general liability and property coverage. Our overview of condo and HOA insurance basics covers where fidelity coverage fits into the bigger picture.
