Insurance info regarding neighbors helping in the community #558245
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Last update 2026-07-10 · Becky Kent-Hager PMS
This is from our Insurance company, I asked about differnt scanrios with using people with in the Neighborhood to do the work, The zero-employee work comp policy we discussed is intended to protect the association if a board member is injured while acting on behalf of the association. However, the coverage does not apply to jobs that should be performed by a licensed or professional contractor. For example, a board member is picking up trash around the common area and is injured, and that person is deemed an employee of the association, the work comp coverage will respond. In the case of Pinewood Lakes, the person doing the plumbing work should carry his own policy which would provide coverage in the event of an injury. The association would want to obtain a proof of insurance showing the coverage is in place and listing the association has an additional insured. For example, is if the plumber is injured while working, his own work comp policy would respond. It is also important that he carries general liability insurance. If he were to make an error with the irrigation that causes water damage to a homeowner’s property, his insurance will respond rather than the association being responsible. If the association would like to hire him as an employee, we can instead put a standard workers' comp policy in place. The main difference between the two policies is that the zero-employee workers' comp policy is designed for associations whose board members are not compensated, where a standard workers' compensation policy covers individuals who are compensated for their work. The zero-work comp policy. The cost is around $480 a year for a $1M limit.