Hiring Licensed and Insured Contractors for Your HOA

Hiring licensed and insured contractors for your HOA

Before your association approves contractor work, check more than the price and a certificate of insurance. Confirm that the contractor’s license is active and appropriate for the job, ask what the insurance policy covers, and decide who will collect and keep the records. Missing endorsements, policy exclusions, and undisclosed vendor relationships can leave a board with difficult questions after work begins.

Our full article gives HOA board members and managers a practical process for reviewing contractor licensing, workers’ compensation and liability coverage, written contracts, manager duties, and board oversight. It explains what to request before work starts and what to document so your association can use a consistent process for the next project.

Three forms to put the process in writing

• HOA Vendor Licensing and Insurance Policy helps set standards for checking contractors and retaining records.
• Board Resolution Adopting the Policy records the board’s decision.
• Management Agreement Addendum addresses the manager’s document collection, reporting, and disclosure duties.

If your board is also reviewing the association’s own coverage, explore CoverWatch’s HOA insurance review. Self-managed boards looking to organize records can explore EasyHOA. Your association still needs to verify each contractor’s qualifications and coverage.

See membership options to read the full article and build a review process suited to your community.

For educational and informational use only. This preview is not legal advice or a substitute for legal services. Check your governing documents, CC&Rs, and applicable state statutes, and consult qualified counsel before acting.