---
title: Condo association insurance - questions about fidelity bonds
description: Does our condo association require condo association insurance, a fidelity bond and D&O insurance too?
---

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# Condo association insurance - questions about fidelity bonds

| [Condo Association Insurance](https://www.condoassociation.com/blog/topic/condo-association-insurance) |  

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## What do you think? Question:

Our condo has 176 units and we have condo reserves of approximately $850K and operating funds of $200K. We have [D&O insurance](https://www.condoassociation.com/condo-association-insurance/tabid/81732/Default.aspx) and a Fidelity Bond of $1M. Our managing insurance agent refuses to obtain a [Fidelity Bond](https://www.condoassociation.com/condo-association-insurance/tabid/81732/Default.aspx) because they state that they don't handle "cash".

In reality, the [property management](http://directory.condoassociation.com/directory/listing/guide/property-management) company receives our monthly condo fee, deposits those checks into various accounts and they do on-line transfer of funds between accounts. They also issue checks on behalf of the condo which are signed by two HOA Board members. My question is - does the law require a management agent to have a fidelity bond equal to the amount of funds that the HOA has on deposit? And, is failure to provide a fidelity bond grounds for contract termination? Thanks everyone for your comments.

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## What do you think? Answers (4)

#### What are your thoughts on this topic?

***Comments and postings are not legal advice**, but are the opinions of our readers. This forum and its contents are being monitored. Please be respectful of each other. *  
  

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