Workers’ Compensation Insurance for Your HOA

workers_compensation_factsAs a community association, it may not seem that workers’ compensation is a necessary tool in your arsenal. However, to keep the neighborhood looking good, you probably hire outside vendors, such as contractors, landscapers, etc. If this is the case, you need to protect your HOA with workers’ compensation in case someone is injured while working for you.

HOA Employees

An HOA is like any business, and depending on the size and needs of the community, your HOA may have employees, such as someone to work the front desk. These employees are direct employees of the HOA. If they were an employee at ABC Company, ABC Company would legally be required to provide that employee, and all their employees, with workers’ compensation insurance. Similarly, because your employees are working for your HOA, which is a business, you need to have them covered under workers’ compensation to protect you if an injury occurs while on the job.

Full-Time Contracted Employees

Some HOAs need full-time workers’ like a custodian, but they choose not to directly hire an employee. Instead, they contract with a different company and use their employees. These full-time contracted employees work a regular schedule, such as Monday through Friday 8 a.m. to 5 p.m. They aren’t technically employees of the HOA, so does your association still need to worry about workers’ compensation? Yes, you absolutely still want to have a policy in place. Most likely, the contractor also has a workers’ comp policy, and you should verify this, but it’s also a good idea to have your own, in case their policy lapses, or you are somehow found responsible.

Other Contracted Employees

Another common situation is that your HOA may need to occasionally hire contractors for one-time work. For example, the clubhouse needs a new roof, so you hire roofers to fix it. These contractors only come for a short time then move on to the next job. Again, you’ll want to verify they have workers’ compensation through their own employer, but it isn’t a bad idea to have coverage to protect them yourself. It’s always better to be safe, especially when dealing with potential injuries that could fall on the HOA’s shoulders.

Like any business, an HOA needs different types of insurances to protect itself. Workers’ compensation may not seem like a must, especially if you don’t hire your own employees, but it is a good idea to have and not need then to need and not have.

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