Many condominium and homeowners associations (HOAs) don’t realize that California law requires them to carry workers’ compensation insurance—even if they don’t have any direct employees. Unfortunately, failing to secure the right coverage can expose board members and homeowners to significant financial risk.
Why Workers’ Compensation Is Required
Under California Labor Code §3700, any employer with at least one employee must carry workers’ compensation insurance. For associations, this rule applies even when they:
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Hire contractors or vendors such as landscapers, repair crews, or maintenance staff.
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Use part-time or occasional workers.
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Believe volunteers or independent contractors are not employees (courts may decide otherwise if an injury occurs).
Without coverage, if a contractor or worker gets injured while doing association business, the HOA or condo association could be held responsible for medical bills, lost wages, and penalties.
The Hidden Risks
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Contractor Misclassification: A contractor who doesn’t carry valid workers’ comp could claim employee status after an injury.
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Board Member Liability: Individual board members may be held personally liable if the association lacks proper coverage.
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Costly Penalties: The State of California imposes heavy fines on associations that fail to comply.
Protect Your Community — Stay in Compliance
Workers’ compensation insurance isn’t just a legal requirement; it’s peace of mind for your board, your homeowners, and your community. The good news is that Insurance Incorporated specializes in helping HOAs and condo associations get the right coverage to stay protected and compliant.
👉 Call us today at 877-898-9333 to discuss your association’s needs and secure the right workers’ compensation policy.
Your community deserves protection — let us help you safeguard it.
