Association Workers Compensation Insurance

Most associations are under the impression that they do not need Workers Compensation insurance if they do not have any employees. You need to take the necessary steps to keep your association’s financial future secure.

Every association – whether they have employees or not – is faced with exposures if an uninsured contractor or a volunteer worker for the association is injured. You need to consider the purchase of an “If any” Workers Compensation policy that will include a voluntary compensation endorsement and will cover board members and volunteers that are injured during the course of their duties.

You need to include a hold harmless agreement clause in your contract and obtain proper certificates of insurance from all subcontractors. You should maintain updated certificates of insurance from any hired contractor for both General Liability and Workers Compensation insurance. The certificate of insurance should name the management firm and the association as additional insured.

If you engage the services of an independent contractor who does not have Workers Compensation insurance, the law may hold you responsible for work-related injuries. As a minimum, you should ask the contractor to provide you with a certificate of insurance for:

  • General Liability insurance – recommended limit of $1,000,000
  • Insuring clause naming the association as additional insured
  • Workers Compensation Insurance

You may also want to inquire about:

  • Verification of any required contractor’s license
  • Verification of contractor’s fidelity bond for protection against theft of items

We can provide any association with Workers Compensation Insurance, even if you have no employees! Here are some actual claims paid. These losses were paid by the National WC Program designed specifically for Condo/HOAs:

Risk State Total Paid   Description
CA $102,972   Board Member fell walking grounds – broken shoulder, knee
VA $24,500   Volunteer fell and landed on head
IL $24,000   Maintenance Worker fell from ladder – broke both ankles
MD $15,710   Maintenance worker fell while picking up trash
NJ $11,677   Manager developed hernia while pushing dumpster

Feel free to send us a copy of the certificate to review. We will advise you of any corrections or changes that need to be made.

Don’t get caught without this coverage. We can review your situation and provide you with the proper insurance protection. You can contact our Frederick or Virginia office to review the certificates and even help the independent contractor obtain their own insurance. Call us at 888-439-0479. We look forward to working with you.