SamE2 (New Jersey)
Posts: 310
Posts: 310
Posted:
If your HOA does not have any employees do you have workmans comp insurance? Our agent is recommending an "if any" workmans comp policy.
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Workmans Comp Insurance
Started by SamE2 • 7 replies • 491 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
We don't, but we expect the vendors we hire to have it, as we require they release us from all subcontractor liens if they use them (otherwise if the subcontractor doesn't get paid, they may go after us).
Some HOAs might get this to cover volunteers in case of situations like a group of residents volunteering for a community cleanup or putting holiday decorations on the clubhouse, someone falls and gets hurt doing it and then sues the association for medical bills.
You might want to discuss this in more detail with your agent and be very careful in what your volunteers are able to do, and perhaps prepare a board resolution to this effect. One website noted "Volunteers are not typically trained in safety protocols as a paid employee would be. They may not understand the scope of their responsibilities, or they may end up performing unauthorized or negligent acts. They may not perform work to the same level of competency or quality as a paid employee."
Some HOAs might get this to cover volunteers in case of situations like a group of residents volunteering for a community cleanup or putting holiday decorations on the clubhouse, someone falls and gets hurt doing it and then sues the association for medical bills.
You might want to discuss this in more detail with your agent and be very careful in what your volunteers are able to do, and perhaps prepare a board resolution to this effect. One website noted "Volunteers are not typically trained in safety protocols as a paid employee would be. They may not understand the scope of their responsibilities, or they may end up performing unauthorized or negligent acts. They may not perform work to the same level of competency or quality as a paid employee."
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Our attorney also recommends it if you have volunteers doing any physical labor. If somebody can hurt themselves doing *anything* for the association, you need to have this insurance.
(They also say "no way Jose" to having volunteers do snow removal, workers comp or no workers comp. That's just begging for trouble.)
(They also say "no way Jose" to having volunteers do snow removal, workers comp or no workers comp. That's just begging for trouble.)
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
At least one of my former HOA's covenants required vendors to have workman's comp insurance. Furthermore, my state's statutes required vendors to have it.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Quote:
Posted By SamE2 on 09/24/2020 8:46 AM
If your HOA does not have any employees do you have workmans comp insurance? Our agent is recommending an "if any" workmans comp policy.
If your HOA does not have any employees do you have workmans comp insurance? Our agent is recommending an "if any" workmans comp policy.
We do the same thing. Such a policy isn't that expensive. It's meant to be a safety net of sorts, just in case an employee of a contractor slips through the cracks and isn't actually covered under someone else's workers comp policy.
If you actually have employees and need to have a workers comp policy to cover them, it's a different type of policy that you need.
BillH10 (Texas)
Posts: 1,217
Posts: 1,217
Posted:
We recommend WC insurance to our clients for all the reasons provided by those who have responded, even though contractors are required to have WC insurance and we require proof before a contract is executed.
It is carried by the Association in which we reside using the same rationale. This Association has very active committees, some of which are involved in reviewing common area landscaping and other 'outside' activities. As someone mentioned, it is a safety net.
It is carried by the Association in which we reside using the same rationale. This Association has very active committees, some of which are involved in reviewing common area landscaping and other 'outside' activities. As someone mentioned, it is a safety net.
ND (PA)
Posts: 792
Posts: 792
Posted:
Yes, you should still have your own Workers Compensation Insurance.
Search Google for "HOA workers comp insurance" and you'll come up with several links that provide really good answers to your question.
In my last HOA, we had our own Workers Compensation Insurance even though we always hired contractors who had their own policies. While every attempt is made to ensure hired contractors have their own policies, there are no absolute guarantees that the policy will be sufficient, that the policy with be the right policy, active at the time it is needed, or any other number of scenarios. The best guarantee is carrying your own policy.
I liken it to Uninsured/Underinsured Motorist Coverage that you may get on your own Auto Insurance Policy . . . it's protection that you carry on your own policy in the event that someone who is uninsured/underinsured causes an accident that involves you and then can't pay, or if the same uninsured/underinsured person flees the scene.
Similarly if a contractor's Workers Comp policy turns out to be insufficient or possibly never existed, then you may still have some coverage if a claim is made.
All that said, insurance is best discussed with insurance professionals so they may provide the best guidance and you can do the risk assessment and cost benefit analysis for your HOA. Also when it comes to volunteers, a special Workers Comp Policy is needed since most of them cover paid employees, not volunteers. Again for discussion with your insurance professional.
Search Google for "HOA workers comp insurance" and you'll come up with several links that provide really good answers to your question.
In my last HOA, we had our own Workers Compensation Insurance even though we always hired contractors who had their own policies. While every attempt is made to ensure hired contractors have their own policies, there are no absolute guarantees that the policy will be sufficient, that the policy with be the right policy, active at the time it is needed, or any other number of scenarios. The best guarantee is carrying your own policy.
I liken it to Uninsured/Underinsured Motorist Coverage that you may get on your own Auto Insurance Policy . . . it's protection that you carry on your own policy in the event that someone who is uninsured/underinsured causes an accident that involves you and then can't pay, or if the same uninsured/underinsured person flees the scene.
Similarly if a contractor's Workers Comp policy turns out to be insufficient or possibly never existed, then you may still have some coverage if a claim is made.
All that said, insurance is best discussed with insurance professionals so they may provide the best guidance and you can do the risk assessment and cost benefit analysis for your HOA. Also when it comes to volunteers, a special Workers Comp Policy is needed since most of them cover paid employees, not volunteers. Again for discussion with your insurance professional.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here