When should a property manager be bonded by a property management company? Is there a difference between bonding and fidelity insurance?
First, anytime a management company deals with the property or funds of another, it should obtain fidelity coverage to protect against theft by employees of the company. Since a property manager is often responsible for writing or signing checks for the association, the management company should make sure to have appropriate fidelity coverage. Although general liability policies often include fidelity coverage up to a certain amount, a property management company can likely obtain an endorsement to increase the amount of coverage. This coverage increase might be advisable for companies with many employees or many associations.
