Fidelity Bond

§16-99-148(g) A new section is added to clarify that a condominium hotel operator who is an individual having no employees and utilizing his or her own apartments or units to provide transient lodgings shall not be required to obtain and maintain a fidelity bond, which conforms to insurance industry practice of providing fidelity bond coverage only in situations where there are employees.

New Rule
Old Rule
(g) The fidelity bond shall not be required of an individual owner providing apartments or units for transient lodging; provided that ownership of the apartment or unit is in the individual owner's name and not in an entity's name; and provided further that the owner has no employees. Where the individual owner has an employee, the individual owner shall obtain and maintain a fidelity bond.