Real Estate & Property Law

Work Parties - Workers Compensation Coverage - Is It Necessary?

Questions often arise for Boards about workers compensation insurance. Should a board purchase it for the association even if there are no employees; does it cover board members who are running errands or doing any physical jobs for the association, does it cover work committees, does it protect the HOA when someone is hurt on the job working any construction project?

I have been providing some thought provoking articles about ways to save money these days, and some of the discussions involve work parties and a discussion of the risks. Here is some information from an insurance professional who attended a program that I gave for the South Coast Homeowners Association recently, at which the subject of workers compensation insurance came up. I appreciate it when someone shares their investigative findings with me, so I can share them with you! Here goes...

"As an insurance agent, I am getting many questions on the 'If Any' Work Comp policies. I?ve done some research and found that there are policies available that will cover not only the uninsured employee of a contractor but also board members, committee members and volunteers helping out around the association. A perfect example is a member of the landscaping committee of an association in Ventura that was poked in the eye while examining the health of a bush and was rushed to the urgent care. Luckily the injury was minor and her health insurance took care of most of the bill but what would happen if she lost her eye? In this litigious society I can picture her suing the HOA for her disability."

$500 or $600 is not very much vs. a PPD suit.

What do you think?"

I agree.

This information came from and a big Thank you goes out to ...

Barbara J. Terry, of Bill Terry Insurance Agency
Santa Barbara, California

Full post as published by California Condo & HOA Law on May 09, 2009 (boomark / email).