Workers’ Compensation Coverage is like Blood to the Body . . . It is Necessary to Survive! Workers’ compensation insurance is a type of insurance that provides wage replacement and medical benefits to employees who injure themselves while on the job. In exchange, the employees waive their right to sue their employer for their injuries. Not all community associations have employees. They usually just have volunteers and maybe a management agent, so they incorrectly assume that they don’t need workers’ compensation insurance. However, that could be a costly mistake. Community associations often contract with vendors who do have employees who can get injured while performing their jobs on the community associations’ property. A vendor’s employees can sue the community association for the injury, especially if the vendor does not have proper workers’ compensation insurance. Moreover, community associations also mistakenly assume that workers’ compensation insurance only applies to paid employees. However, it can apply to volunteers as well; this includes board members and committee members. Imagine, for example, a board volunteer is walking the neighborhood to do architectural inspections, trips and falls and breaks their arm. The board member’s injury would be covered if the community association has the proper workers’ compensation coverage. Every community association should have sufficient workers’ compensation insurance to protect itself from liability and should make sure that any vendors it engages have proper licensing and insurance, including workers’ compensation insurance. If not, depending on the jurisdiction the vendor’s employee could be considered an employee of the community association and the liability for the employee’s injury transferred to the community association. This is why the community association should have workers’ compensation insurance to protect itself. Any contracts with a vendor should always include the requirement for the vendor to provide the community association with a certificate of insurance evidencing that it carries the proper insurance, as well as proof that it is properly licensed and will indemnify the community association. In addition, the association should maintain its own workers’ compensation insurance to cover liability if any of its vendors are not properly insured and to cover its volunteers. The community association should also always consult with its attorney and insurance professional.
20
Below is a breakdown of what community associations need to know about workers’ compensation insurance. When an injury occurs while an employee is “on the job,” it “falls” (pun intended) under workers’ compensation coverage. What does that mean? Let’s go over the basics of this coverage.
1 Workers’ compensation versus medical benefits Workers’ Compensation Insurance
Health Insurance
A business insurance that pays for an employee’s medical and
Health insurance is a benefit provided by an employer, retirement medical or individual for any non, workplacerelated injury or illness.
DC: 66-2/3 % VA: 66-2/3 % MD: two-thirds for lost wages due to an injury or illness that occurs while performing work-related activities. This can include activities in the office, while at client meetings, running errands, etc. Workers’ compensation insurance is regulated by the state and employers are often mandated to provide the coverage based on the number of employees.
2 Workers’ compensation coverage is required for employer groups as follows MD and DC
One (1) or more employees
VA
Two (2) or more employees
