D&O and crime insurance for condo and HOA boards
Directors and officers (D&O) insurance protects an association and its volunteer board when someone claims a decision was a wrongful act, while crime or fidelity insurance protects association money from theft and fraud. Florida law requires the second for condo associations and HOAs; D&O is optional but common. We insure condo and homeowners associations.
Florida statute references checked against the 2026 Florida Statutes on October 20, 2026.
What does D&O insurance cover for a condo or HOA board?
D&O insurance protects directors, officers and usually the association itself against claims alleging wrongful acts in managing the community, and it typically pays legal defense costs and covered settlements or judgments, up to the policy limits and subject to its terms.
Claims boards commonly face
- Alleged mismanagement or breach of fiduciary duty, such as how funds were spent.
- Failure to enforce, or inconsistent enforcement of, the governing documents.
- Disputes over rules, assessments, elections and board decisions.
- Conflict-of-interest allegations against a director or officer.
- Employment practices claims, such as wrongful termination or discrimination by an employee, if the policy includes that coverage. Some D&O forms include it and others sell it as an add-on, so ask.
Who is protected
- Directors and officers personally, including volunteers.
- The association itself, when the policy reimburses it for indemnifying its directors and officers or covers it directly as an entity. Association policies differ on this, so confirm which applies to yours.
Sources: Triple-I: directors and officers insurance; Community Associations Institute: insurance in community associations, who covers what
Do Florida condo and HOA directors need D&O insurance?
Florida law does not require D&O insurance: chapter 718 says a condominium association may obtain it, and chapter 720 does not require it for HOAs, so the requirement usually comes from your governing documents, a lender or the board's own decision.
Florida's not-for-profit corporation law (chapter 617) applies to condominium and HOA corporations organized under it, and it protects directors and unpaid officers in many situations. Under section 617.0834, a director or officer is not personally liable for monetary damages for a decision or failure to act unless the person breached their duties and the breach involved one of these:
- A violation of criminal law, unless the person had reasonable cause to believe the conduct was lawful.
- A transaction from which the person derived an improper personal benefit.
- In a claim by or on behalf of the association or a member, conscious disregard for the association's interests or willful or intentional misconduct.
- In a claim by anyone else, recklessness, bad faith, malicious purpose, or wanton and willful disregard of human rights, safety or property.
That protection limits liability for damages; it does not stop a claim from being filed or pay for the defense. Boards also carry duties that can create claims. For example, Florida treats a willful and knowing failure to complete a milestone inspection or a structural integrity reserve study as a breach of fiduciary duty to unit owners. Ask how your policy treats claims about statutory duties, and see milestone inspections and SIRS for condo associations.
Sources: Florida Statutes §718.111: association powers and insurance; Florida Statutes chapter 720: homeowners' associations (full chapter); Florida Statutes §720.302: HOA purposes, scope and application; Florida Statutes §617.0834: liability of directors and officers; Florida Statutes §718.112: bylaws, reserves and structural integrity reserve study
What does D&O insurance usually exclude?
Common D&O exclusions include fraud, personal profit, bodily injury and property damage, prior and pending litigation, claims between insured persons and late notice of a claim, and the wording varies by policy.
| Exclusion | What it means for a board |
|---|---|
| Fraud and dishonest acts | What it means for a boardIntentional fraud, criminal acts and dishonest conduct are generally excluded. Theft of association money belongs under crime coverage. |
| Personal profit | What it means for a boardClaims that a director or officer gained a personal profit or advantage they were not legally entitled to. |
| Bodily injury and property damage | What it means for a boardInjury and damage claims belong under general liability, not D&O. |
| Prior and pending litigation | What it means for a boardLawsuits, claims or known circumstances that existed before the policy began. |
| Insured versus insured | What it means for a boardA claim by one insured person against another, such as one director suing another. Some policies make exceptions, so read the wording. |
| Late notice | What it means for a boardA claim reported after the policy's reporting rules. Report claims and circumstances promptly. |
How do D&O and crime insurance compare?
D&O protects people and the association from claims about decisions, while crime or fidelity insurance protects association money from theft and fraud; Florida requires the second and leaves the first optional.
| Topic | D&O insurance | Crime and fidelity insurance |
|---|---|---|
| What it protects | D&O insuranceDirectors, officers and usually the association itself | Crime and fidelity insuranceThe association's money and property |
| What triggers a claim | D&O insuranceAn allegation that a decision or failure to act was wrongful | Crime and fidelity insuranceTheft, fraud or embezzlement of association funds |
| Example | D&O insuranceAn owner sues the board over how it enforced the rules or spent funds | Crime and fidelity insuranceA person who handles the association's money diverts funds |
| Required by Florida law? | D&O insuranceNo. Optional for condos ("may") and not required by chapter 720 | Crime and fidelity insuranceYes. Insurance or a fidelity bond is required for condos and HOAs |
| Who is covered | D&O insuranceVolunteer directors and officers, and the entity if the policy says so | Crime and fidelity insurancePeople who control or disburse funds. Management company employees only if the policy is endorsed to include them |
Sources: Florida Statutes §718.111: association powers and insurance; Florida Statutes §720.3033: HOA officers, directors and fidelity coverage; Community Associations Institute: insurance in community associations, who covers what
Who has to be bonded, and for how much?
Florida law requires condo associations and HOAs to maintain insurance or a fidelity bond for everyone who controls or disburses association funds, in an amount that covers the maximum funds in the custody of the association or its management agent at any one time; the statutes set no fixed dollar amount.
| Question | Condominium association (§718.111(11)(h)) | HOA (§720.3033(5)) |
|---|---|---|
| Who is covered | Condominium association (§718.111(11)(h))All persons who control or disburse funds, including those authorized to sign checks and the president, secretary and treasurer | HOA (§720.3033(5))All persons who control or disburse funds, including those authorized to sign checks and the president, secretary and treasurer |
| How much | Condominium association (§718.111(11)(h))Enough to cover the maximum funds in custody of the association or its management agent at any one time | HOA (§720.3033(5))Enough to cover the maximum funds in custody of the association or its management agent at any one time |
| Who pays | Condominium association (§718.111(11)(h))The association | HOA (§720.3033(5))The association |
| Can it be waived? | Condominium association (§718.111(11)(h))The condominium statute contains no waiver provision | HOA (§720.3033(5))Yes, if a majority of the voting interests present at a properly called meeting approves it each year |
| Enforcement | Condominium association (§718.111(11)(h))On a complaint, the Division of Florida Condominiums, Timeshares, and Mobile Homes monitors compliance and may issue fines and penalties | HOA (§720.3033(5))The subsection does not describe a fine process |
To set the limit, add up the most cash the association holds at one time, including operating and reserve accounts, and discuss it with your agent and attorney.
Sources: Florida Statutes §718.111: association powers and insurance; Florida Statutes §720.3033: HOA officers, directors and fidelity coverage
What questions should a board ask about D&O and crime coverage?
Ask whether the policies cover the people, claims and money your association actually has, using the checklist below at every renewal.
D&O questions
- Does the policy cover the association itself as well as individual directors and officers?
- Do defense costs reduce the limit, and who chooses the attorney?
- Is employment practices coverage included, and what sublimits apply?
- Is the policy claims-made, what is the retroactive (prior acts) date, and can former directors still report a claim?
- Are committee members and volunteers covered, not only elected directors?
- What exclusions and sublimits apply to the claims our board is most likely to face?
Crime and fidelity questions
- Is the limit at least the most money held at one time, including operating and reserve accounts?
- Does it cover everyone who signs checks or handles money?
- Does it cover employees of the management company, and computer or funds-transfer fraud?
- If members waived the requirement (HOAs), is the annual vote recorded?
Frequently asked questions
Are volunteer directors personally liable in Florida?
Often not. Under Florida's nonprofit corporation law, a director or unpaid officer is not personally liable for monetary damages for a decision or failure to act unless they breached their duties and the breach involved a crime, an improper personal benefit, or specified misconduct, recklessness or bad faith. A claim can still be filed and defended.
Is D&O insurance required for a Florida HOA or condo board?
No. Chapter 718 says a condominium association may obtain liability insurance for directors and officers, and chapter 720 does not require it for HOAs. Your governing documents or a lender may require it, and many boards buy it to protect volunteers. Review the policy wording and limits with a licensed agent.
What is the difference between D&O and fidelity insurance?
D&O insurance responds to claims that a board decision or failure to act was a wrongful act, and it pays defense costs and covered losses. Fidelity or crime insurance reimburses the association for stolen or misused money. Florida requires fidelity coverage for people who handle association funds, while D&O is optional under the statutes.
Who has to be bonded in a Florida condo or HOA?
Everyone who controls or disburses association funds, including people authorized to sign checks and the president, secretary and treasurer. The insurance or bond must cover the maximum funds in the custody of the association or its management agent at any one time, and the association pays the cost.
Can an HOA waive the fidelity bond requirement?
Chapter 720 allows an HOA to waive it if a majority of the voting interests present at a properly called meeting approves the waiver each year. The condominium statute has no similar waiver language. Speak with your association attorney before waiving, because a stolen-funds loss would then fall on the association.
Florida laws and sources used on this page
Statute references were checked against the 2026 Florida Statutes on October 20, 2026. Florida changes these laws often, so confirm current requirements with your association attorney.
- Triple-I: directors and officers insurance
- Community Associations Institute: insurance in community associations, who covers what
- Florida Statutes §718.111: association powers and insurance
- Florida Statutes chapter 720: homeowners' associations (full chapter)
- Florida Statutes §720.302: HOA purposes, scope and application
- Florida Statutes §617.0834: liability of directors and officers
- Florida Statutes §718.112: bylaws, reserves and structural integrity reserve study
- Florida Statutes §720.3033: HOA officers, directors and fidelity coverage
Ready to review your association's insurance?
Send us your governing documents, current policies and renewal date. A licensed Assure US agent reviews them, markets the account to multiple insurance companies and walks the board through the options in plain English or Spanish.
This page is general information, not a coverage recommendation. Policies and requirements vary; a licensed Assure US agent will review your association's documents and policies.