The majority of community associations do not have direct employees and question the need to carry a Workers Compensation policy. There are two reasons that an association needs to carry a Workers Compensation policy.
The first reason is that the Florida Workers Compensation Statute states that if an employee of a vendor is injured while doing work for the association and their employer does not carry a Workers Compensation policy, the association would be responsible for the medical and other related claim expenses for the injured employee.
For this reason, it is important to be sure all vendors carry the proper insurance coverages. In some cases, even after obtaining the certificates of insurance the vendors policy could lapse for various reasons and the association may not even be aware of the cancellation.
The second reason is that the Workers Compensation policy would provide coverage for volunteers within the community. The policy would provide coverage for injured board members and other community volunteers injured volunteering for the community.
As an example, our office provided coverage for a claim where a board member climbed a ladder to remove tree branches from the roof of a townhome building. The ladder slipped out from under him, causing him to land on his back on the sidewalk. The association’s Workers Compensation policy is providing coverage for the expenses related to his injuries and recovery.
The policy also provides coverage for non-board members volunteering within the community. If an association is hosting a block party and a non-board member volunteering for the event is injured while carrying boxes of food, the policy would provide coverage for the injuries.
Not carrying a Workers Compensation policy puts the association at risk should the employee of an uninsured vendor or a volunteer be injured. Is this a risk worth taking?
Reach out to Park & Associates today to discuss your options!