HOAleader.com - Tip of the Week - March 13, 2009
Published: Fri, 03/13/09
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HOA Insurance Matters: Do You Need Workers' Compensation
Insurance Just to Cover Volunteers?
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One way many homeowners and condo associations are trying to save
money in these tight economic times is to have owners in the
community volunteer to perform services that the HOA would
otherwise pay someone to do. Often these are jobs like gardening
and other types of grounds maintenance like shovelling snow.
(Luckily shoveling snow is a non-issue in my part of California!)
So what kind of insurance should your HOA have if you plan to do
this?
And how much will it cost?
"Every association should obtain what's called a minimum premium
workers' compensation policy," advises Bob Tankel, principal
at Robert L. Tankel P.A. in Dunedin, Fla. "That means the
association is representing that it has no employees that need
coverage, but in the event volunteers are injured, they'll have
workers' compensation to cover the injury and any allegations of
a loss of income."
Is that a reasonable expense for struggling associations? "You
need to make a business decision whether the cost of the
policy--about $1,200 a year--is cheaper than three hours of a
lawyer's time or the first five hours of defending a lawsuit,"
says Tankel. "That's a business decision. If you're going to save
money in one way, you need to get protection in another."
Read more about how you can mitigate risks to your HOA if you
plan to use volunteer help: http://www.hoaleader.com/members/241.cfm
Best regards,
Matt Humphrey
President
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