Condo Association Management Blog

Yes.....it's good for you and the company. It shows that you are well prepare in casa of an accident. At least to have a Commercial General Liability.

While I disagree with the idea that the business relationship is not at arms length and believe that could cause a D&O issue for the board, I will focus my attention to your direct question. Are you "required" to obtain insurance? That is a question with many answers. Depending on the state, as a sole proprietor, you may be required to have workers compensation. You may also be required under certain state laws to obtain liability insurance as a contractor. If the board is doing their due dilligence, they should require you to obtain general liability and workers compensation for both entities and professional liability for the management duties. 
 
From your own perspective and protection, I would highly reccomend it. If someone were to "allege" an injury based on your cleaning service (trip over the vacuum cleaner, slip on a floor) or damaged property, you will want to call on that $900 insurance policy to protect you. Remember, it is not a matter of you causing injury that is of concern, it is the simple allegation that you caused injury that will need defending. Lawyers charge $300 an hour to defend these frivolous and real lawsuits. Can you afford to do that on your own dime?

One of the first things you and the Board needs to do is look at your bylaws/condo docs. What do they say about the Board hiring contractors? As stated by someone else, you will need workers comp and liability insurance before doing any work. This protects you and the Association.  
 
 
 
You will also have to complete a  
 
W-9 for IRS purposes because you have to invoice all work and the Association would have to use their standard bill payment procedures. Everything has to stand up to audit scrutiny.  
 
 
 
Also, look at the laws for your state regarding the powers HOA's have, some are very specific about these issues and actually supercede your condo docs.

just becouse you form a property management co. you have to have a cam linces.and ins.if you are the only employee you can get excemp from worker comp.