Hi friends,
You might be wondering if you need workers’ compensation insurance. While a condominium association or homeowners’ association may not have traditional employees, the need for workers’ compensation insurance should always be a part of your community’s insurance package. Here are a few reasons why attorneys and industry leaders highly recommend this coverage, even without employees.
For contractors and vendors.
Associations often hire contractors, vendors, and service providers to perform various tasks like maintenance, repairs, landscaping, or construction. These individuals may not be direct employees of the association, but rather are considered subcontractors or independent contractors. In some jurisdictions, if a subcontractor or independent contractor gets injured while working on the association’s premises, they may have the right to seek workers’ compensation benefits from the association. Having workers’ compensation insurance can protect the association from potential liability in such cases.
For volunteer workers.
Associations frequently rely on the assistance of volunteers who contribute their time and effort to perform tasks within the community, such as organizing events, assisting with administrative work, or maintaining common areas. While volunteers are not typically considered employees, accidents or injuries can still occur. Workers’ compensation insurance can provide coverage for volunteer workers, ensuring they receive the necessary medical benefits and protecting the association from potential liability.
As a legal requirement.
In some jurisdictions, you may be legally required to carry workers’ compensation insurance, regardless of whether you have employees. The specific laws and regulations vary by location, but the objective is to ensure that any injured parties, including subcontractors, independent contractors, or volunteers, have access to appropriate benefits and medical coverage if an accident occurs.
For additional protection.
Even if workers’ compensation insurance is not mandatory for an association, it can still be beneficial to have coverage in place. Accidents can happen unexpectedly, and having workers’ compensation insurance provides an extra layer of protection for the association and its stakeholders in the event of an injury or accident-related claim.
We hope this helped you further understand workers’ compensation insurance. Feel free to post any comments with additional questions or feedback.
Until next time,
The BRIGS Team
