February 2018 Newsletter

Every Association, employees or not, faces the following exposures:
1. An employee of an uninsured contractor is injured at the association and the employer has not provided proper
coverage. The association may be required by the local Labor/Industrial authorities to step in as the ‘employer’ as it
relates to benefits owed that injured employee;
2. A volunteer working on behalf of the associations is injured during the course of their duties. The association should
(and ultimately may be required to) treat that injury as ‘work‐related’ thereby requiring benefits owed under the labor
code.
Coverage Considerations…
Every Community Association Should Have A
Workers Compensation Insurance Policy
- EMPLOYEES or NOT!
While the General Liability policy does provide coverage for ‘bodily injury’, it EXCLUDES ‘bodily injury to an employee’.
Serious injury to a volunteer and/or employee of a contractor that the industrial commission rules an ‘employee’ of the
association would be excluded by your GL carrier.
An ‘If Any Workers Compensation Policy’ that includes a VC Endorsement will respond to each of these exposures as
evidenced in the losses outlined below.
Recent Florida Workers Compensation claims paid
on behalf of Condo/HOA’s:
Total Paid Description
$252,931 | Board Member fell hanging picture,
broken ribs, punctured lung.
$257,705 | Fell off of stool broken right hip
$91,836 | Maintenance worker tripped over wire broke hip
$61,245 | Volunteer was shoveling gravel, back strain
$24,939 | Property Managers office covered in mold
Coverage Availability…
Until recently, this type of workers’ compensation policy for Condos and HOAs has been tough to come by. Most
carriers do not offer coverage for organizations without direct employees. Carriers that do offer the ‘if any’ coverage
(meaning no direct employees) typically will not offer coverage for volunteers.
It was truly a case of the insurance industry not understanding the niche and the risk associated with the class of
business. For an approximate annual premium of $750.00, you can now purchase a worker’s compensation policy that
includes full ‘if any’ protection and a Voluntary Compensation endorsement that treats injuries to volunteers working in
an official capacity for the Association as a ‘work related injury’ (meaning first dollar coverage – not excess of personal
medical of the volunteer).
Alison Kallman
Vice President
Kallman Insurance
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