FIDELITY BOND

Fidelity Bond or surety bond covers the association for a loss resulting from its officers, directors or employees' dishonest acts. Most boards assume they have this coverage in the associations master insurance policy. Frequently, they do not. Although inexpensive, the bond frequently must be purchased separately, Management companies must purchase their own fidelity bonds and usually cannot be added to the association's policy.

Updated by ADAMS KESSLER 8/9/2008