There are several reasons that your condo association might need or want workers compensation coverage even if it does not have any employees. 

To protect the Association against claims from contractors and vendors

• Even if a condo association does not have any employees, if it hires an independent contractor or a vendor, and that contractor or vendor gets injured while working for the association, the association could be held liable for the medical expenses and lost wages. Having if-any coverage can protect the association from a potential financial loss in such a case.
• In addition, it is very difficult for an association to ensure that all unit owners hire only licensed and insured contractors to do work on their units. If one of these contractors gets injured on the premises, they may be able to sue the association and this workers compensation policy would be able to respond.

To comply with state laws or other contractual requirements that require the association to carry coverage.

• In some states, workers' compensation insurance is mandatory for all businesses, regardless of the number of employees they have. This means that even if a condo association has no employees, they may still be required to carry workers' compensation insurance.

To cover potential future employees

• The association may be considering hiring a part-time or full-time employee (such as a manager or maintenance person) in the near future. In this scenario, it may be wise to plan ahead and purchase a workers compensation policy in advance.  

While a condo association with no employees may not need workers' compensation coverage in the traditional sense, for the above reasons and more, this is considered a best practices coverage and it is recommended for all associations to consider including this with their master insurance policy. Condo Association “If-Any” Workers Compensation can be very affordable and can often be purchased for as little as $350/year. 

We provide Workers Compensation coverage in Newton, Needham, Wellesley, and Massachusetts. Contact Kovalev Insurance for workers compensation insurance and request a complimentary consultation to ensure you are properly protected.