What is Fidelity coverage?
Fidelity coverage provides protection for loss of money (i.e., reserves or operating expenses, additional securities and property that arises from the fraudulent or dishonest acts of those defined as persons handling the association’s money. What are the most common types of losses? Creating fictitious invoices for services either independently or in collusion with vendors Converting assessments paid to cash Overstocking inventory and converting excess into cash Unauthorized borrowing of funds A community association’s Fidelity Bond should provide coverage for: Theft or forgery by any employee of the insured A broad definition of employee that includes temporary help and non-compensated officers. Computer theft and electronic funds transfer fraud coverage Property management company and their employees as additional insured Fidelity coverage is typically written in blanket form, which means that it extends coverage to all persons with normal definition of insured without the necessity
