Associations that collect assessments and pay vendors are exposed to theft and fraud. Florida law may require fidelity coverage for people who handle association funds, so check the current requirements.
What it generally covers
- Employee and volunteer dishonesty
- Forgery and alteration
- Funds transfer fraud, when included
Where gaps often hide
- Limits that do not match the money the association holds
- Coverage for the management company’s staff
- Verification conditions for payment changes
Questions worth asking
- Do the limits match the most money we hold at one time?
- Who is covered, including the management company?
- Does it include funds transfer fraud?
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General information only. Actual coverage depends on your policy, and coverage is not in force until confirmed in writing by the agency.