Vendor Insurance Question

Started by JohnG31 • 1 replies • 1187 views

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JohnG31 (Florida)
Posts: 1

Posted:

Our HOA currently requires that all outside for-profit vendors using our clubhouse prove they have liability coverage in the amount of $1 million. This applies to, for example, personal physical trainers, art instructors, computer trainers, etc. This has caused some owners to be upset in that they feel this is an undue hardship for part-time or occasional providers to have to obtain insurance in order to offer services to our residents. My question is whether or not requiring liability insurance such as this is a common practice? I would appreciate other associations sharing their experience/recommendations. Thanks in advance.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

My question is: Does the HOA pay for this service or is it independent? If the HOA is paying the vendor then I can understand the requirement as most paid vendors of the HOA do require this. However, if this just locals or fellow members who rent on their own to offer this service I do not see the need for this.

We had a damage deposit of $100 plus the rental fee when someone rented. They got back the damage deposit once we confirmed no damages. We did not require any insurance policies. Our insurance should have covered the clubhouse anyways. I felt our damage deposit was too low and should be set more toward our deductible or atleast 1/2 of that. A consideration if not in place already.

Former HOA President

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