When completing questionnaires for condo resales for clients, I often come across questions that refer to the association's "fidelity insurance" or "fidelity bond." This is coverage that insures the association's funds against theft by owners, board members, and their managers or agents. It may be referred to in your insurance policy as "Employee Dishonesty" coverage.
The IL Condo Act requires buildings of six or more units to obtain fidelity insurance covering all of the funds that are under the control of the association. Many smaller associations do not have any coverage, though they may have large sums sitting in their bank accounts.
Fidelity insurance should cover all individuals who handle association funds. Property managers and others who handle association funds should be named as additional insureds on the policy. Review your insurance and speak to your insurance agent for more information about this coverage.