Recently a discussion came up around an HOA hosting classes for members and residents.  Specifically, the conversation was regarding yoga and painting classes, but this content can be applied to any such event.

The Association has liability insurance that does not exclude the presentation of a class, or bodily injury sustained by a participant of a class.  The better question is, “Is it in the best interest of the community to assume that exposure?”

If the HOA is coordinating the class, assigning the instructor, advertising to members and residents, tracking attendance and doing everything else associated with the presentation, it might make sense for the Association to assume the liability for the course itself.  But if the instructor is using common area and charging attendees for the instructor’s own financial gain, the instructor should be providing the Association with some sort of indemnification.

Let’s look at it a different way.  Take out class instruction and put in birthday party of a child.  Most Associations would require the host to name Association as an additional insured on a liability insurance policy.  If the Association is making such a requirement of a member for a birthday party, why would the Association assume the liability of a member who is actually running a “business?”

If the instructor is hesitant because there is a cost associated with obtaining insurance, that is understandable.  However, that seems to be the cost of doing business. Most other instructors are renting space at a studio where part of their rental fee includes the insurance.  And, even more importantly, the requirement seems to be in the best interest of the membership.

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