Condo and HOA boards authorize contractor work on behalf of the community. When a contractor causes an injury or damages a resident's property, the association can be drawn into the claim-sometimes as a co-defendant. Verified contractor insurance is the mechanism that protects the association when that happens.
This checklist provides a step-by-step review process for every contractor engagement at an HOA or condominium property.
Section 1: Pre-Work Authorization Requirements
Before any contractor is authorized to access the property:
- Contractor has signed a written agreement or work order that includes insurance requirements
- Agreement specifies all required coverage types and minimum limits
- Agreement requires additional insured and waiver of subrogation endorsements
- COI received from contractor's insurance broker (not directly from the contractor)
- All required endorsements requested and received
- Contractor license verified (for licensed trades: plumbing, electrical, HVAC, roofing, elevator)
- Work not authorized until all above items are confirmed
Section 2: General Liability Coverage Verification
| Scope Category | Per Occurrence Minimum | Aggregate Minimum | Verified |
|---|---|---|---|
| Routine maintenance (cleaning, landscaping, pest control) | $1,000,000 | $2,000,000 | ☐ |
| Skilled trades (plumbing, HVAC, electrical) | $1,000,000 | $2,000,000 | ☐ |
| Roofing or exterior work | $1,000,000 | $2,000,000 | ☐ |
| Elevator service | $2,000,000 | $4,000,000 | ☐ |
| Major renovation or structural work | $2,000,000 | $4,000,000 | ☐ |
| Hazardous materials (asbestos, lead) | $2,000,000 | $4,000,000 | ☐ |
- GL per occurrence limit meets or exceeds the applicable minimum
- GL aggregate limit meets or exceeds the applicable minimum
- Products/completed operations aggregate is present
- Personal and advertising injury coverage is listed
Section 3: Workers' Compensation and Employers' Liability
- Workers' compensation: Statutory limits per the state where work is performed
- Employers' liability bodily injury per accident: $500,000 minimum
- Employers' liability per disease (per employee): $500,000 minimum
- Employers' liability per disease (policy limit): $500,000 minimum
- Waiver of subrogation in favor of association endorsed onto the WC policy
For sole proprietors claiming exemption from workers' comp:
- Exemption status verified in the state where work is performed
- Contractor has certified in writing that no other workers will be present on-site
- Understanding is documented in the contractor agreement
Section 4: Additional Coverage by Scope
Umbrella/Excess Liability:
| Work Scope | Minimum Umbrella Required | Verified |
|---|---|---|
| Routine maintenance | Not required | N/A |
| Skilled trades | $1,000,000-$2,000,000 | ☐ |
| Major systems (elevator, fire suppression) | $3,000,000 | ☐ |
| Structural or facade work | $5,000,000 | ☐ |
- Umbrella is written on a "following form" basis over GL, auto, and employers' liability
Commercial Auto:
- Required if contractor uses vehicles on the property (Yes/No)
- If required: $1,000,000 combined single limit
- Hired and non-owned auto (HNOA) included if employees use personal vehicles
Builder's Risk (major projects):
- Required for projects involving structural work or projects over $150,000 (Yes/No)
- If required: policy naming association as additional insured or loss payee
- Coverage amount equals or exceeds project value
Pollution/Contractor's Pollution Liability (hazmat):
- Required if work involves asbestos, lead, mold, chemicals, or underground tanks (Yes/No)
- If required: $1,000,000 per occurrence minimum
- Policy covers work at the specific project location
Section 5: Additional Insured Verification
This section is the most critical. A checked box on the ACORD form is not sufficient.
- AI status is referenced on the COI (in description or AI field)
- Specific endorsement form identified: CG 20 10 / CG 20 11 / Other: ___
- Endorsement document is physically attached to the COI submission
- Endorsement names the association's exact legal entity: _______________
- Endorsement also names the management company (if applicable): _______________
- Endorsement specifies "primary and non-contributory" coverage
- For construction or improvement work: completed operations coverage confirmed (CG 20 11 or equivalent)
Why completed operations matters: If a contractor installs a defective water line that fails two years after project completion, causing flooding across three units, your additional insured status under a CG 20 11 provides coverage for the resulting claim. CG 20 10 does not extend to completed operations claims.
Section 6: Waiver of Subrogation Verification
- WOS is indicated on the COI for General Liability
- WOS is indicated on the COI for Workers' Compensation
- WOS endorsement is attached to the submission (not just checked on the form)
- WOS endorsement applies in favor of the association specifically
Section 7: Carrier and Policy Quality
- Insurer is licensed and admitted in the state where the property is located
- Insurer is rated A- or better by AM Best (verify at ambest.com)
- Policy number is legible and recorded in the compliance file
- Policy effective and expiration dates are confirmed as covering the project period
- No endorsements or exclusions on the policy are inconsistent with the work scope
Section 8: Documentation and Recordkeeping
- Compliance review logged: date, reviewer, contract reference, findings
- All COIs and endorsements saved to the vendor/contractor file
- Deficiency notices documented if any gaps were identified
- Approval date and work authorization documented
- For project work: reminder set for certificate renewal if project extends beyond policy expiration
- Retention: certificates retained minimum 7 years from project completion
Section 9: Post-Project Compliance
- For projects with completed operations risk: flag for post-project COI retention review
- Verify that contractor's policy was active throughout the full project duration
- Retain project-specific documentation for the duration of the statute of limitations for construction defects in your state (often 10 years)
Frequently Asked Questions
Q: Our property manager handles contractor approvals. Does the board need to be involved in insurance verification? A: The board has fiduciary responsibility for the association. Insurance compliance can be delegated to the property manager, but the board should establish the requirements, receive periodic compliance reports, and understand their exposure. "The property manager handles it" is not a defense in a lawsuit.
Q: How do we handle contractor insurance when we use the same handyman for small jobs all year? A: Treat recurring informal workers the same as formal contractors. Require annual COI verification. A handyman with no insurance who injures themselves in your building creates the same liability as any other contractor-possibly more, because informal relationships are harder to define as independent contractor relationships.
Q: Do seasonal vendors (holiday light installers, snow removal) need the same level of verification? A: Yes. Seasonal work creates the same liability as year-round work. For seasonal vendors who do short-term, high-activity work on the property-rooftop access, ice removal with equipment, ladder work-insurance verification is especially critical.
Q: Can the association board approve work without a COI in urgent situations? A: A board can make the decision in a genuine emergency, but should document the emergency, the decision made, and the follow-up timeline for getting the COI. Some associations carry a small supply of pre-approved emergency vendors with verified insurance for common emergency types.
Bramble automates the comparison work in this checklist-reading your contractor agreements, extracting requirements, comparing them to submitted COIs, and flagging every gap before the board approves a single work order.