DonaldM7 (Florida)
Posts: 20
Posts: 20
Posted:
New owner. Former irrigation company owner wants to help with our irrigation system, it would save us a great deal of money, what type of liability should we insist on.
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Liability for owner helping with irrigation system
Started by DonaldM7 • 12 replies • 1348 views
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NpS (Pennsylvania)
Posts: 4,216
Posts: 4,216
Posted:
A bit more detail would be helpful.
1. What is scope of work?
2. Is this the company that did irrigation work on property? Was it satisfactory? Has it been inspected?
3. Why is he offering to do it? What is cost? What is cost savings?
1. What is scope of work?
2. Is this the company that did irrigation work on property? Was it satisfactory? Has it been inspected?
3. Why is he offering to do it? What is cost? What is cost savings?
Sikubali jukumu. Read all posts at your own risk.
DonaldM7 (Florida)
Posts: 20
Posts: 20
Posted:
His work is first rate and has done many small repairs for free. For myself I know what quality work is in this area, and we have enough other bids for many of these repairs. Here is one example. The main intake line going to the pump has been repaired by others with costs of $700 to $845, he charged $200. He is retired and enjoys the work.
Our main concern is liability. Do we just need a form stating the the community will not be liable or something else.
Our main concern is liability. Do we just need a form stating the the community will not be liable or something else.
NpS (Pennsylvania)
Posts: 4,216
Posts: 4,216
Posted:
What insurance does he have?
I would not leave it to establishing liability via contract. There needs to be something to back it up.
If he only works on small projects, his insurance cost might be relatively inexpensive. You might even want to cover the cost of his premiums if that makes financial sense under the circumstances.
I would not leave it to establishing liability via contract. There needs to be something to back it up.
If he only works on small projects, his insurance cost might be relatively inexpensive. You might even want to cover the cost of his premiums if that makes financial sense under the circumstances.
Sikubali jukumu. Read all posts at your own risk.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Don,
If he is considered a contractor, he should have the insurance you require of all contractors.
If he is a volunteer and you are simply reimbursing costs for supplies, then the Associations insurance should cover him and the Association.
If he is considered a contractor, he should have the insurance you require of all contractors.
If he is a volunteer and you are simply reimbursing costs for supplies, then the Associations insurance should cover him and the Association.
NpS (Pennsylvania)
Posts: 4,216
Posts: 4,216
Posted:
Quote:
Posted By TimB4 on 05/17/2016 7:13 AM
Don,
If he is considered a contractor, he should have the insurance you require of all contractors.
If he is a volunteer and you are simply reimbursing costs for supplies, then the Associations insurance should cover him and the Association.
Don,
If he is considered a contractor, he should have the insurance you require of all contractors.
If he is a volunteer and you are simply reimbursing costs for supplies, then the Associations insurance should cover him and the Association.
But if he wants to get paid for his time ... I don't recommend treating him like an employee.
Sikubali jukumu. Read all posts at your own risk.
MarkM31 (Washington)
Posts: 351
Posts: 351
Posted:
You need to protect the HOA and the member doing the work. If he is saving you money, throwing him to wolves by demands will only cost you money when he bails.
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By TimB4 on 05/17/2016 7:13 AM
If he is considered a contractor, he should have the insurance you require of all contractors.
If he is considered a contractor, he should have the insurance you require of all contractors.
A contractor's insurance policy does not cover the association, it covers the contractor. It provides the contractor with an attorney to go to court and argue that the association is the liable party and that the contractor is totally without fault. A person who suffers damages will sue both the contractor and the association. If you happen to be in a state where there is joint and several liability, the guy with the deepest pockets will be the one to pay.
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By DonaldM7 on 05/17/2016 6:42 AM
Our main concern is liability. Do we just need a form stating the the community will not be liable or something else.
Our main concern is liability. Do we just need a form stating the the community will not be liable or something else.
Liability is ultimately established in court. A court will not likely be bound by any agreement that denies or shifts responsibility, especially if a third party has suffered damages.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 05/17/2016 1:28 PM
Posted By TimB4 on 05/17/2016 7:13 AM
If he is considered a contractor, he should have the insurance you require of all contractors.
If he is considered a contractor, he should have the insurance you require of all contractors.
A contractor's insurance policy does not cover the association, it covers the contractor.
True. Hopefully, I didn't imply that it would.
However, if the contractor does carry insurance and is reputable, the issue will likely be resolved prior to the issue going to court.
NpS (Pennsylvania)
Posts: 4,216
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 05/17/2016 1:28 PM
Posted By TimB4 on 05/17/2016 7:13 AM
If he is considered a contractor, he should have the insurance you require of all contractors.
If he is considered a contractor, he should have the insurance you require of all contractors.
A contractor's insurance policy does not cover the association, it covers the contractor.
Contractor can ask his insurer for a rider naming HOA as additional insured.
Sikubali jukumu. Read all posts at your own risk.
MarkM31 (Washington)
Posts: 351
Posts: 351
Posted:
Is the member doing the work even a contractor? Charging $200 for a job others would charge $800 for sounds like he is just charging for parts.
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
I would start by reviewing Florida statutes on insurance requirements for condos and hoas.
For a Florida condo, see http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/0718.html . Search this site for "insurance" and "contractor."
For a Florida HOA, see http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html
Your association's property insurer should be consulted as well.
Your state's regulating authority for workers' compensation insurance should be consulted. My former HOA had to drag one excellent contractor kicking and screaming to give the HOA proof of workers' comp insurance. The HOA was happy to pay extra to cover the insurance premiums, but the contractor still took a lot of persuading.
One of the problems I have seen is that these well-meaning folks may do work on something a previous contractor has repaired, voiding the warranty. I think contractors rightly get upset when there is an overlap of responsibility.
For a Florida condo, see http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/0718.html . Search this site for "insurance" and "contractor."
For a Florida HOA, see http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html
Your association's property insurer should be consulted as well.
Your state's regulating authority for workers' compensation insurance should be consulted. My former HOA had to drag one excellent contractor kicking and screaming to give the HOA proof of workers' comp insurance. The HOA was happy to pay extra to cover the insurance premiums, but the contractor still took a lot of persuading.
One of the problems I have seen is that these well-meaning folks may do work on something a previous contractor has repaired, voiding the warranty. I think contractors rightly get upset when there is an overlap of responsibility.
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