HOAs face real exposure anytime someone performs work on behalf of the association, even if they’re “volunteers,” even if they’re “independent contractors,” and even if the HOA thinks it has no employees.
The Core Problem: HOAs Often Have “Hidden Employees”
Even when an HOA says, “We don’t have employees,” carriers and state statutes may see things di erently. HOAs commonly use:
- Board members performing physical tasks (cleaning, repairs, landscaping)
- Volunteers doing maintenance or community projects
- Contractors who may be uninsured or misclassified
- Part-time workers paid under the table
If any of these individuals are injured while performing duties for the HOA, the association can be held responsible.
Why General Liability Isn’t Enough
General Liability covers third-party bodily injury, but not injuries to people performing work for the HOA. Without Workers Comp, the HOA may face:
- Personal injury lawsuits from volunteers or board members
- Out-of-pocket medical payments
- Legal fees
- Special assessments to cover unexpected costs
This is exactly why Workers Comp is recommended even for “no-employee” HOAs.
The Contractor Gap: A Major HOA Exposure
Many HOAs assume hiring contractors eliminates their responsibility. Not always.
If a contractor:
- Doesn’t carry Workers Comp
- Has lapsed coverage
- Provides a fraudulent COI
- Is a sole proprietor not required to carry WC
…the HOA can be considered the statutory employer and become responsible for injuries.
This is one of the most common HOA claim scenarios.
Volunteers & Board Members Are Still a Liability
Florida law allows volunteers to be covered under Workers Comp if the HOA elects coverage. Without it, an injured volunteer may sue the association.
Board members performing physical tasks (pressure washing, pool maintenance, landscaping) are especially vulnerable.
The Cost
Workers Comp for HOAs is typically inexpensive because payroll is low or nonexistent. But the financial risk of not carrying it is enormous. Often the annual cost for a workers compensation policy is $400-$1,200/year.
