Coverage Requirements

When required, the HOA must have fidelity/crime insurance coverage for the dishonest or fraudulent acts of anyone who either handles or is responsible for funds held or administered for the HOA. Fidelity/crime insurance is required whether or not that individual receives compensation for services rendered. Accordingly, the HOA fidelity/crime insurance policy must include coverage for the acts of any management agent.

A management agent that handles funds for the HOA should additionally be covered by its own fidelity/crime insurance policy, however, a fidelity/crime insurance policy maintained by the management agent (with the management agent as the named insured) is not an acceptable alternative for a fidelity/crime insurance policy in the HOA’s name that provides coverage for the acts of all parties with access to their funds, including the management agent.