DID YOU KNOW THAT MOST DIRECTORS AND OFFICERS LIABILITY POLICIES REQUIRE YOU TO DO THE FOLLOWING?
- Maintain updated certificates of any hired contractor for General Liability and Workers Compensation insurance. General Liability insurance – recommended limit of $1,000,000.
- Have a signed contract with all contractors that will include a hold harmless clause (sample below) that protects and indemnifies the Association. The contract should also include the requirement for the contractor to name the Association and Management Company as additional insured.
- Maintain and update certificates annually upon their expiration.
As a follow-up to a prior blog, please take the necessary steps to keep your HOA Associations financial future safe. Please be sure to maintain updated certificates of any hired Contractors General Liability and Workers Compensation insurance. If the Independent Contractor does not purchase Workers Compensation or General Liability insurance, a charge may be made under your policy.
Before hiring a contractor, be sure to ask for proof of insurance. You should attempt to weed out less responsible contractors who may put their workers and customers at risk by not meeting minimum standards of coverage for injuries and risks that could cost you money in a lawsuit resulting from a general liability claim or a worker’s injury.
You may also want to inquire about:
- Verification of any required contractors license
- Verification of contractors fidelity bond for protection against theft of items
SAMPLE ONLY – Hold Harmless Clause (please contact your attorney for the actual contract):The Sub-Contractor shall defend, indemnify and hold harmless (Your Association and Management Company), its officers, employees and agents harmless against any and all liability, loss or damage, expense, including reasonable attorney’s fees, or claims for injury or damages arising out of or connected with any operations for any job with ( Contractor).
All legal agreements need to be reviewed by your legal counsel.
You can contact our office to review the certificates and even help the Independent Contractor obtain their own insurance https://www.insurance-financial.net/commercial-insurance/
https://www.insurance-financial.net/association-building-property-insurance/
https://www.insurance-financial.net/directors-officers-liability-insurance/