Does Your HOA or Condo Association Need Workers Compensation Insurance?

Liability and asset protection is a vital aspect of any business or organization in our current times. Your HOA (homeowners association) or condo association likely has a governing board that makes decisions on behalf of the members. In many, of not most, cases, this is a small group of owners and the governing association has no permanent employees. Does your HOA or condo association need Workers Compensation Insurance?

Why Would My HOA or Condo Association Need Workers Comp Insurance?

Most everyone has heard of Workers Compensation Insurance. It is designed to protect the employees of a company or organization in the event of an injury or sickness incurred while on the job or performing work-related activities. Employers of a certain size in Florida and other states are required by law to carry Workers Comp Insurance to protect themselves and their employees. The coverage provides medical treatments, some replacement wages for missed work relating to the injury/sickness and even death benefits.

Many associations outsource all of their maintenance and repairs and don’t have employees or payroll to purchase a traditional Workers Compensation Insurance policy; therefore, they don’t think it is necessary. This can be a grave mistake. Unless your HOA or association has large reserves set aside for attorney fees and unexpected medical losses, you, in fact, do need Workers Comp coverage. If a volunteer, board member, or uninsured contractor gets hurt, your HOA or association could be ultimately responsible for medical expenses. 

Here are two examples of scenarios where your HOA or association could be held liable in the event of an accident:

• An employee of an uninsured contractor sustains an injury at your HOA property and his or her employer has not provided the necessary coverage. Your association may be required by the local labor/industrial board to assume responsibility as the ‘employer’ and provide the required benefits owed to that injured employee.
• A volunteer working on behalf of your association is injured during the course of their duties. The association should (and ultimately may be required to) treat that injury as ‘work-related,’ thereby requiring benefits owed under the labor code.

Here are a few actual claims from HOAs or condo associations:

• An HOA board member fell hanging picture, sustained broken ribs and a punctured lung. Actual claim = $252,931.
• A volunteer at a condo association fell off a stool and broke their right hip. Actual medical claim = $257,705
• A contract maintenance worker at an HOA complex tripped over a wire and broke a hip. Actual medical claim = $91,836.
• An HOA volunteer was shoveling gravel for a project and incurred a strained back. Actual medical claim owed by the HOA = $61,245.

While your General Liability policy likely does provide coverage for ‘bodily injury,’ the fine print also likely excludes ‘bodily injury to an employee.’ Serious injury to a volunteer and/or employee of a contractor that the local industrial commission rules an ‘employee’ of the association would be excluded by your General Liability insurance carrier. This would leave you with serious liability issues and costs.

Where Can I Get Workers Comp Insurance for HOAs or Condo Associations?

Is your HOA or condo association financially able to handle similar claims our of their endowment or operating funds? Most cannot. And here’s another problem you may encounter. Most insurers cannot provide Workers Comp coverage for your HOA or condo association. It isn’t a product that is widely available.

Peeples Insurance Agency, with offices in Bradenton, Sarasota, and Margate, Florida, offers Workers Compensation coverage specifically built for HOAs and condo associations. Less than 100 agents across Florida offer this coverage. It is incredibly affordable, especially considering the protection to your homeowners and association.

In this era of heightened sensitivity regarding liability and litigation, you need to protect your association and homeowners. Contact Peeples Insurance Agency today and learn more about Workers Compensation Insurance specifically designed for HOAs and condo associations in Florida.