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Subject: FL HOA not requiring Workers Comp for Lawn Service
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Author Messages
FrancieR
(Florida)

Posts:3


05/21/2015 11:21 AM  
What are the pro's and con's of hiring a Lawn Service that has liability insurance but no Workers Compensation in Florida? Florida does not require workers comp for small business, etc., but HOA members are concerned that if someone working for the Lawn Service gets injured while on our common property that they can still take action against the HOA. Is that true? Will insurance company with general liability coverage not cover injuries? Will insurance company defend the HOA from any claim for injury by someone with no health insurance or limited health insurance? (some of these workers don't have any health insurance or its just minimal coverage)

What are the risks of hiring a lawn service that doesn't have Worker's Comp coverage in Florida?



PitA


Posts:0


05/21/2015 11:56 AM  
What does the HOA's insurance agent say ?

What does the HOA's attorney say ?

Y'all are a corporation - act like it !
TimB4
(Virginia)

Posts:16481


05/21/2015 12:14 PM  
Francie,

There is always a risk when hiring any contractor. All the Association can do is insist that the company hired does carry insurance required by the State.

Even if a contractor does have workers comp, they can still bring legal action against the Association.

For more information on workers compensation insurance in FL see the States website on the issue:

http://www.myfloridacfo.com/division/wc/
MikeS1


Posts:521


05/22/2015 1:16 PM  
The Lawn Service needs to have WC coverage. Usually if you do not have a COI (certificate of insurance) from the vendor, the general contractor or the HOA will be liable for any injuries.
It would be interesting to see that happens if the insurance company did an audit. Check with your insurance agent.
AnneB4
(Florida)

Posts:19


06/19/2015 11:33 AM  
In Florida, construction companies with more that one employee must carry WC and other businesses that have four or more employees must carry WC. That leaves out many very small businesses. For those very small companies, most insurance companies won't even write a WC policy. We had this very same discussion when hiring our janitorial service. A former board member was insistent the janitor carry it, even though the State doesn't require it nor will most companies even write the policy.
AllisonD
(Florida)

Posts:447


06/19/2015 3:56 PM  
We purchased wc insurance for our association. The fees are about $400 per year and its well worth the alternative. Just because someone shows you their insurance when you hire them does not mean it wont be canceled the very next day. Its extra protection for your HOA.
JohnC46
(South Carolina)

Posts:8730


06/19/2015 4:54 PM  
Allison

Does the WC cover anybody that comes on to your property to work?
GenoS
(Florida)

Posts:3234


06/19/2015 7:56 PM  
Like Allison, our HOA also has WC insurance and it's very reasonable. We consider it extra insurance in case one of our contractors' employees sustains an injury while working on the property. We carry it even though, at the present time, we have no direct employees. People here have plenty of life experience and stories that attest to what a mess you can find yourself in if you don't have it. And after all that, we still require all vendors to show proof that they carry their own coverage before we let their people on the property. That goes for our lawncare service, tree trimming service, landscaping service and pesticide service. Any additional vendors or contractors that we occasionally hire from time to time must also show it.
AllisonD
(Florida)

Posts:447


06/20/2015 3:24 PM  
Posted By JohnC46 on 06/19/2015 4:54 PM
Allison

Does the WC cover anybody that comes on to your property to work?



Yes I believe it will cover anyone we hire and their employees. If you are asking if it will cover someone a homeowner hires, I do not believe so, their own insurance would kick in.
LarryB13
(Arizona)

Posts:4099


06/20/2015 7:47 PM  
My reading of state law here indicates that WC protects the employer against lawsuits by his employee. If you hire a contractor who has employees, you are not their employer and it is doubtful that your WC insurance will cover the contractor's employees although your general liability insurance would protect you against a lawsuit.

Keep in mind that some states have enacted laws that say, in essence, that if an employee accepts WC benefits he waives his right to sue anyone else.

AllisonD
(Florida)

Posts:447


06/22/2015 5:12 PM  
In Florida, WC insurance will cover uninsured contractors working on the property. A google search brings up lots of results on this, here is one with a list of Q&A's: http://www.gulfshoreinsurance.com/8-commonly-asked-questions-regarding-workers-compensation-coverage-for-associations/
MitchellM1
(North Carolina)

Posts:2


06/22/2015 6:52 PM  
On work like grass cutting I believe it is a good idea for the contractor to furnish their own insurance. But if he does not have it, then the HOA needs to have their own coverage. I am a general contractor, and I have a sub from time to time that does not have either one. But regardless of what he does not have, I make sure he is covered under mine, IF I want him to do the work. But I backcharge him for it. I ask my agent what is the charging rate for their specific classification and I deduct that amount rounded up for my time and send him his check. I make sure he knows that up front.

Hopefully after a while, they will find that it will be cheaper for them to get their own insurance. But for what is was worth, I had a discussion with my carrier's auditor and they pretty much told me to stay away from uninsured subs if possible. But I have to look at the work they are doing and decide if it is worth it.
AllisonD
(Florida)

Posts:447


06/23/2015 6:02 PM  
Posted By MitchellM1 on 06/22/2015 6:52 PM
On work like grass cutting I believe it is a good idea for the contractor to furnish their own insurance. But if he does not have it, then the HOA needs to have their own coverage. I am a general contractor, and I have a sub from time to time that does not have either one. But regardless of what he does not have, I make sure he is covered under mine, IF I want him to do the work. But I backcharge him for it. I ask my agent what is the charging rate for their specific classification and I deduct that amount rounded up for my time and send him his check. I make sure he knows that up front.

Hopefully after a while, they will find that it will be cheaper for them to get their own insurance. But for what is was worth, I had a discussion with my carrier's auditor and they pretty much told me to stay away from uninsured subs if possible. But I have to look at the work they are doing and decide if it is worth it.



I wish all our vendors were as responsible, but unfortunately, many of them here in Florida use day laborers who speak very little English and are not insured.
MitchellM1
(North Carolina)

Posts:2


06/24/2015 5:46 PM  
Allison, I see it in construction as well here in NC. Until everyone wises up it is going to continue. And then someone is going to get hurt bad and it is going to bankrupt them.
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Forums > Homeowner Association > HOA Discussions > FL HOA not requiring Workers Comp for Lawn Service



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