When hiring someone to work in your community or electing board members to your association, you’d like to think that you can invest your trust into that person. Unfortunately, sometimes that trust can be broken, leading to financial ramifications for the association.
Crime and Fidelity Insurance is vital for strengthening an association’s financial safety. In this article, we’ll cover what Crime and Fidelity Insurance is and how proper coverage can protect your community.
What Is Crime and Fidelity Coverage?
Crime and Fidelity Insurance is a type of property insurance that covers losses incurred as a result of employee theft, fraud, embezzlement, forgery, robbery, etc. This includes the acts of board members, officers, committee members, managers, and anyone else who has access to the HOA’s funds.
Some policies may also cover property losses caused by criminal acts, such as burglary, which is not covered by the HOA’s Commercial Property Insurance policy.
Since losses from employee theft, embezzlement, and other criminal misappropriation can deal a significant damage to an association’s funds, this type of policy is especially important when it comes to protecting your community from crime and theft.
Is My Community Really at Risk?
Homeowners associations often have money sitting in the bank, whether it be reserved for community improvements or saving for the future. As with any bank account, there is always a risk of theft. For some associations, the amount of savings and potential loss can be substantial.
From doctored invoices, to someone skimming cash from a community event, to the improper use of the association’s credit or debit card, to third party computer fraud, there are many scenarios where associations of all sizes could potentially become a target. Luckily, Crime and Fidelity Insurance would protect your association should any of these scenarios play out in your community.
What Does Crime and Fidelity Insurance Not Cover?
This insurance is built around protecting an association’s funds. So, any financial crime against the association would be covered. Any crimes involving the theft of actual property would be covered by the association’s property coverage instead.
How Do I Get Started?
To get started, reach out to your insurance provider to inquire about Crime and Fidelity coverage. When speaking with your insurance agent, be sure to mention any potential scenarios you fear happening in your community to verify that you would have proper coverage.
Here at Blue Lime, we are happy to answer any questions you may have over Crime and Fidelity coverage, or any type of general HOA insurance. We work hard to help board members mitigate their risks through customizable coverage plans. We know that boards are busy, and your time is valuable, so our quoting and claims services are quick and easy! Find out what we can do for your association today!