HOA's-Make Sure Your Contractor is licensed and insured

Here's a great article by Bob Hunt, a director of the National Association of Realtors, with a clear warning to every HOA and Management Firm in California-make sure your contractors are Licensed and insured!

This contractor wasn't working on decks, however, all the same principles apply, whether it's rain gutter installers, roofers or whoever, don't let them on your property until everything you need is in place-license, insurance, add'l insured endorsements... confer with legal counsel for legal advice on what you need to protect your Association.

HOA Should Be Sure Workers are Insured
by Bob Hunt

California homeowner associations (HOAs) and HOA management companies will want to pay attention to a recent ruling coming out of the state's Second Appellate District. The case, Heimen et al. v Worker's Compensation Appeals Board, involved the claim of a worker injured on association property for worker's compensation benefits.
The petitioner, Robert Heiman, did business as Pegasus Properties, a property management business. Pegasus had entered into a management agreement with Montana Villas Homeowners Association. At an association meeting, Montana Villas HOA agreed with Pegasus' recommendation that rain gutters be installed on part of the condominium building.

Pegasus hired Mark Hruby, doing business as Rube's Rain Gutter Service, to install the gutters. Hruby in turn hired Freddy Aguilera to perform some of the work. According to the court record, "On November 5, 1977, the first day of the job, a rain gutter contacted a high voltage electrical wire and Aguilera was severely shocked and fell and was seriously injured. Hruby completed the job and was paid by check."

Hruby was not a licensed contractor and did not carry worker's compensation insurance.

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