The Colorado Division of Real Estate has enacted a new regulation to require all Colorado Community Association Managers to carry a fidelity bond. The text of Regulation D-10, promulgated by the Division on March 5th, 2015, states, “every active community association manager (and sole proprietorship) must have in effect a crime fidelity insurance policy covering the dishonest acts of all employees of the management company. The insurance carrier issuing the fidelity coverage must be licensed in the State of Colorado and approved to issue fidelity bonds / commercial crime insurance policies, and carry an A.M. Best rating of “A-Excellent” or better. The policy form must conform to the conditions in Reg. D-10 and all relevant Colorado statutes. The coverage limit must not be less in the aggregate than two months of current assessments plus reserves OR a higher amount if required by an Association’s bylaws. The policy must specifically include the designated manager that disburses funds of common interest and/or that is authorized to sign checks on behalf of the community. The Rule further requires that the policy offer coverage for investigations outside of the particular limit of the fidelity bond, being subject to their own per claim and aggregate limits. A sole proprietor may be named as an additional insured on a common interest community’s fidelity insurance policy.

A “fidelity bond”, also known as a commercial crime policy, is a “dishonesty policy”. These obligations protect from losses of company monies, securities, and other property as a result of the acts of fiduciaries who have a manifest intent to cause the common interest community loss. These forms can be very broad and cover other exposures such as burglary, general theft, computer theft, disappearance, forgery, etc. Typical property managers rarely have large sums of cash on hand therefore fidelity bond limits are often low and the corresponding premiums very reasonable.

Colorado fidelity bond leader, Surety One, Inc., specializes in underwriting fidelity risks for ALL business sectors.  Fidelity bonds for HOAs, COAs and related classes are welcomed. We NEVER turn away an applicant. For more information visit us at, call (787) 333-0222 or (800) 373-2804, or email us at  for a fidelity bond for community association managers application or for any fidelity coverage need.

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