Contractor Insurance Requirement

Started by GaryM3 • 3 replies • 1939 views

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GaryM3 (Texas)
Posts: 5

Posted:

Hello:

What kind of insurance and insurance requirements does your HOA require for contractors working for your HOA? and why?

Thanks
Gary

BradP (Kansas)
Posts: 2,640

Posted:

First they need to be licensed, secondly we require liability and workmen's comp insurance. They are responsible for their employees and if they don't have insurance that signals a shady entity that you don't want to deal with. Pluse if an employee gets hurt or something damaged you want their insurance to cover it, if they don't you have a chance to get sued or will have to fix it with your hoa's money.

GaryM3 (Texas)
Posts: 5

Posted:

Is their a way for the HOA to purchase liability and workman's compensation insurance for the contractor for the particular job that they are doing for you if that will result in savings on the project?

GlenL (Ohio)
Posts: 5,491

Posted:

IMO no the contractor has to have the insurance in place for all his other work it is a cost of doing business and I doubt any savings from the HOA providing the insurance would be minor if any and you may be exposing the HOA to even more risk by doing this. What if the insurance you buy doesn't have a high enough coverage and someone is seriously hurt or killed? Now it would be reasonable for the injured party or their family to come after the HOA.

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