Crime/Fidelity/Employee Dishonesty

Coverage that safeguards the association against embezzlement is commonly referred to as crime, fidelity, or employee dishonesty coverage, depending on the insurance provider. Regardless of the term used, this coverage is essential for protecting the association against the misappropriation of funds by a board member with access to the association's finances or by the management company. Such coverage is often mandated by the association's governing documents or state law, and the minimum coverage amount should at least equal the total in the association's operating and reserve accounts, including any investment funds. The required coverage limit can differ among associations and may be adjusted mid-term, if necessary, for lending transactions.

Computer Fraud/Wire Transfer

Computer fraud and wire transfer insurance coverage is a designed to protect associations from financial losses due to various forms of electronic fraud. In an era where digital transactions and communications are commonplace, the risks of cyber threats, such as hacking, phishing, and other forms of cyber deception, have significantly increased. This insurance coverage is crucial for associations looking to safeguard their assets from these modern threats. coverage and often is also required by state statute.