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WORKERS'
COMPENSATION
A workers' compensation (WC) policy is another
important type of coverage that protects the
association from being sued for negligence. If HOA
employees are hurt on the job, your WC policy will
cover medical expenses and lost income caused
by the work-related injury rather than the employee
having to file a legal claim against the association.
Who it covers:
• Association employees
• Uninsured vendors deemed as employees
• Members paid to do community work
• In rare cases, board members and
other volunteers
If your HOA has more than three employees, your
state may require you to carry WC coverage.
However, even if your association doesn't have
employees, a WC policy offers protection if you
hire an uninsured contractor who suffers an injury.
Also, most liability policies specifically exclude
claims that workers' compensation should cover.
Without a WC policy in place, your HOA is left
financially unprotected.
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