Vendor setup · Workers’ compensation
Workers’ compensation insurance
The coverage for your own people if they get hurt on the job.
What it covers
- Workers' compensation protects a business owner from the employer's statutory obligation to cover employees with a work-related injury or illness. NAIC, as of
- Workers' compensation typically pays the employee's medical expenses, rehabilitation costs and some portion of lost wages. NAIC, as of
- Workers' compensation for private-sector and state and local government employees is run by each state's workers' compensation board, not by the federal government. U.S. Department of Labor, as of
Who has to carry it
Check your own state’s agency for your own situation.
- According to the NAIC, workers’ compensation coverage is mandatory for most employers in every state except Texas. NAIC, as of
- According to the NAIC, Texas lets employers opt in to workers’ compensation rather than mandating it. NAIC, as of
- According to the NAIC, in a few jurisdictions workers’ compensation is provided by a monopolistic state fund rather than by private insurers. NAIC, as of
Why managers and boards ask for it · commonly requested
- CAI warns that an unlicensed contractor may lack workers' compensation coverage for an employee's injury. Community Associations Institute (CAI Foundation), as of
- CAI guidance for association maintenance and remodeling projects says a contractor's insurance should likely include construction, property and liability, workers' compensation and professional liability coverage. Community Associations Institute (CAI Foundation), as of
Where VendoRFP asks for it
Each community sets its own insurance requirement when it writes an RFP, and your documents are checked against it before a proposal goes in.
Optional to join
Before you can propose, the current rulebook asks for it in every trade.
VendoRFP’s default RFP request includes this coverage for pool, landscaping, porter, amenity staffing, pest control, HVAC, electrical work, and painting. It’s a starting point the community changes, not an industry norm.
Sources
- Small Business Insurance National Association of Insurance Commissioners (NAIC). As of .
- Workers' Compensation Insurance National Association of Insurance Commissioners (NAIC). As of .
- Workers' Compensation U.S. Department of Labor. As of .
- Community Association Maintenance (best practices) Community Associations Institute (CAI Foundation). As of .
Official pages change. Each line shows the day we last read it.