Why does an association need a Workers Compensation policy, since their management company obtains proof of workers comp for all vendors?
The board of directors has no way of knowing whether there is a lapse in the vendor’s worker’s comp policy (for example, due to nonpayment or didn’t turn in audit report), until something happens. That’s risky. If the vendor’s worker’s comp policy lapses, then the entity responsible for paying the worker’s comp is the association, not the vendor. For more information, see “Risk Analysis” section in Worker’s Compensation Brief.
