Insurance news and information

Suppose you’re a new apartment association board member. Part of your duties is to oversee some of the accounting recordkeeping. But as you’re looking over the accounts, you notice mention of payments to a repair company. You call the number – not in service. You check the address – no known case of that company ever having operations there. Yet as early as a month ago, there was a payment to that company for services rendered.

Call it cooking the books, fudging the numbers, whatever you like. Your association board is looking at a potential case of fraud. One or more of your board members may be skimming funds and manipulating the accounts in order to do so.

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Recovering from Embezzlement Nothing’s worse for business than when a board member or staff member of your homeowner’s association absconds with funds. While your association insurance policy may cover the loss (if you were wise enough to carry employee theft or directors and officers coverage), how do you recover from the publicity and loss of confidence of your residents?

The larger issue may be a depletion of funds available, but a sound insurance policy can help your association recover more quickly. The underlying issue, however, could be more harmful in the long run. In order for an embezzlement to occur, at least in the minds of your residents, someone had to be ignoring something. True? No. But getting beyond that perception can be difficult, if not impossible. Read more…