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HOAs Need Workers Compensation Insurance to Protect Against Potential Liability to Injured Workers

It is not uncommon for associations to hire unlicensed and uninsured contractors to perform contracting activities, including but not limited to landscaping and gardening. If a contractor is uninsured when the services are performed, the association becomes the de facto employer of the contractor and his employees and thus becomes responsible in the event of an injury. To protect against this exposure, an association should have policies in place to make sure that all contractors are licensed and insured during the entire period of their work on the association’s property, and carry a workers’ compensation insurance policy like all other employers. An HOA should never hire any contractor who is not properly licensed and who does not carry liability and workers compensation insurance. Using unlicensed and uninsured contractors is a recipe for disaster.