§ 6203 Association Indemnity Bond Requirements

• •The people in charge (board of directors and commissioner) must approve the type and amount of insurance (bonds) the company uses to protect itself.
• •Instead of getting separate insurance for each person, the company can get one big insurance plan that covers everyone (directors, officers, employees, etc.).
• •A copy of the insurance plan must always be kept at the company’s main office.

A company wants to protect itself from mistakes or bad actions by its employees.

The company can get one big insurance plan (blanket bond) to cover all employees instead of getting separate insurance for each person. The bosses and the commissioner must agree on how much insurance is needed, and a copy of the plan must be kept at the company’s main office.