Why Every Condo and HOA Should Carry “If-Any” Workers’ Compensation Coverage

Why Every Condo and HOA Should Carry “If-Any” Workers’ Compensation Coverage

Condominium and homeowners’ associations often assume that workers’ compensation insurance only applies to organizations with direct employees. In reality, many associations face significant liability exposure even when they operate without payroll or formal staff. This is why “if-any” workers’ compensation coverage has become an important safeguard for condos and HOAs.

What Is “If-Any” Workers’ Compensation Coverage?

“If-any” workers’ compensation coverage is a policy structure designed for organizations that currently have no employees but may still face situations where they could be considered responsible for workplace injuries. The policy essentially provides workers’ compensation protection if an employee exposure arises.

For condo and HOA boards, this coverage can serve as a protective measure against unexpected claims involving:

• Independent contractors
• Day laborers
• Temporary maintenance workers
• Volunteers
• Board members performing physical work
• Vendors who may not carry proper workers’ compensation insurance

While associations may believe they have no employee exposure, insurance carriers and courts may interpret certain working relationships differently after an injury occurs.

The Hidden Risk for Associations Without Employees

Many associations rely heavily on third-party vendors for landscaping, janitorial services, maintenance, roofing, security, or construction work. However, if one of those workers is injured on association property and their employer lacks valid workers’ compensation coverage, the injured worker may attempt to recover damages from the association itself.

In some states, associations can be viewed as a “statutory employer” under certain circumstances. This means the HOA or condo association could potentially become responsible for medical costs, lost wages, legal expenses, and other damages arising from a workplace injury.

Even when the association ultimately prevails, defending these claims can be costly and time-consuming.

Why General Liability Coverage Is Not Enough

A common misconception among board members is that the association’s general liability policy will fully protect them from worker injury claims. In reality, general liability policies often exclude claims that fall within the scope of workers’ compensation laws.

Without an “if-any” workers’ compensation policy in place, an association may find itself facing coverage gaps during a claim dispute.

Workers’ compensation coverage can also help:

• Reduce litigation exposure
• Provide defense costs
• Protect association finances
• Prevent disputes between carriers
• Satisfy contractual or management company requirements

Real-World Scenarios That Create Exposure

Uninsured Contractor Claims

A handyman hired directly by the association falls from a ladder while repairing a clubhouse ceiling. The contractor does not carry workers’ compensation insurance and files a claim against the association.

Volunteer Injuries

A board member or volunteer assisting with hurricane preparation or community cleanup suffers an injury while performing association-related tasks.

Misclassified Workers

An association pays a maintenance worker as a “1099 contractor,” but the worker functions similarly to an employee under state labor guidelines.

Vendor Coverage Lapses

A landscaping company’s workers’ compensation policy expires without the association realizing it. An employee is injured on-site during the lapse period.

In each of these situations, the association could face unexpected financial exposure.

The Cost of Coverage Is Often Minimal

One reason many insurance professionals recommend “if-any” workers’ compensation coverage is that the premium is typically relatively inexpensive for associations with no payroll exposure. The standard premium for an “if-any” workers’ compensation policy is only $492.00 for the 2026 policy year. These rates are calculated annually and become effective on January 1st of each new year.

Compared to the potential cost of defending a workplace injury claim, the coverage can provide substantial value and peace of mind for both board members and property managers.

Best Practices for Condo and HOA Boards

In addition to carrying “if-any” workers’ compensation coverage, associations should also:

• Require certificates of insurance from all vendors. These certificates must include:
• The association listed as additional insured
• A waiver of subrogation in favor of the association
• A hold harmless and indemnification agreement protecting the association

• Verify workers’ compensation coverage annually
• Avoid directly supervising independent contractors in ways that could blur employment relationships
• Maintain written contracts with all vendors outlining insurance requirements and indemnification obligations
• Consult with legal counsel and insurance professionals regarding state-specific requirements

A Small Policy That Can Prevent a Large Loss

Condo and HOA boards work hard to protect their communities from financial risk. While associations without employees may believe workers’ compensation coverage is unnecessary, the reality is that exposures can arise unexpectedly through vendors, volunteers, or uninsured contractors.

“If-any” workers’ compensation coverage serves as an affordable layer of protection that can help shield associations from costly claims, legal disputes, and coverage gaps. In today’s increasingly litigious environment, it is a prudent risk management tool that every condo and HOA board should strongly consider.

Meet the Author

Olivia Rowe

Olivia Rowe is a graduate of Baylor University. She is a licensed 2-20 Agent with 2 years of insurance experience. Her role at Travers Hartnett is Account Manager & Account Executive Support. Olivia upholds the Agency’s high standard in customer service & maintaining relationships with our clients.