Community associations are made up of their members. The people that own property within an association understand that investing in their association helps to enhance property values, as well as connecting the different units together into a true community. So, if an association doesn’t have a professional hired to do maintenance around the community, it makes sense that members might want to step up and step in. Thus, the Volunteer Work Group is born.

The questions we often get, when asked for the insurance perspective, are, “Is a volunteer work group covered?” and, “Is the benefit worth the risk?” Two excellent questions.

First, “Are we covered?” This is typically coming from the workers compensation direction. That is, if someone is hurt while working in the common area, will our workers compensation policy provide assistance with medical expenses?

There is a growing trend for volunteer work in the common area of communities. Many residents are stuck at home and, frankly, tired of having little to do. Boards of directors are worried about operational expenses as the cost of services increases, and they are looking for community members to volunteer their time for minor property maintenance projects. Boards of directors are developing committees to paint building wood trim, replace lightbulbs, improve landscaping, and repair irrigation sprinkler heads. If injured, are these individuals covered under the workers compensation policy for the community?

The HOA workers’ compensation policy protects board and committee members while they are performing their duties as board or committee members. The important thing to note is that the volunteer needs to be named to a committee of the board. If the duties of the volunteer are defined to include property maintenance, then the insurance could be triggered in the event of an injury. With one caveat: if the work performed would otherwise have required a contractor’s license, the workers’ compensation insurance for the community would not apply.

Now, the second question, “Is the benefit worth the risk?” A board of directors would need to ensure the safety of the volunteer worker (e.g., OSHA regulations), which may require site improvements and equipment at an additional cost, and any injury or damage arising from negligence in this area would fall squarely on the shoulders of the association. Another concern is the capability of the volunteer performing the work. That is, have they been properly trained, advised, and educated about the job at hand? Even if this is what the volunteer does for a living, they are not being “hired” by the association for their work, which means any liability insurance for their mistakes does not extend to the association. Does an accountant member of the board of directors prepare the HOA tax return?

In the end, hiring a contractor to perform work in the common area is the best way to transfer liability from the community to another party and protect the interest of the membership.

Michael Berg, MBA, CIRMS, CMCA is the Owner of Berg Insurance Agency and may be reached at michael@berginsurance.com