How’s Your Fidelity Coverage?

I’ve said it more than once, and I will undoubtedly say it again: Your association needs adequate fidelity coverage:
(From KHON in Honolulu, HI)

An Ewa Beach man accused of stealing thousands of dollars from his employer turned himself into police.

According to residents at Pearl 1 condominium in Aiea, the 51 year old man worked as a resident manager until a few months ago.

Police say over a three year period from 2007 and 2010, he forged and cashed numerous checks from the condo’s business account, adding up to $30,000.

He was arrested Thursday on 36 counts of forgery and one count of first degree theft.

He was released pending investigation.

One thought on “How’s Your Fidelity Coverage?

  1. These losses happen quite frequently in the world of condominium associations. I am personally aware of claims ranging from $50,000 to several hundred thousand dollars. Most members and directors of property held in an association are unaware of the fact that standard insurance policies do not cover this type of loss.

    In fact a separate, and remarkably inexpensive, Crime Policy or a Fidelity Bond provides the necessary protection. It is also interesting to note that the vast majority of Directors and Officers policies specifically exclude “failure to procure adequate insurance” or “Failure to purchase insurance” meaning the Directors and Officers coverage will not protect the Board of Directors in the event of lawsuit for a crime loss of association funds due to failure to place the necessary coverage.

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