HOA and condo boards hire dozens of vendors — landscapers, painters, elevator service, reserve study engineers. Each brings liability exposure to common elements and shared property. A clear vendor insurance policy protects the association and satisfies insurer and lender expectations.
Minimum requirements most HOAs adopt
- $1M general liability per occurrence ($2M for structural/roofing)
- Workers compensation when the vendor has employees
- Commercial auto if vehicles enter the property for work
- Association named as certificate holder
- Additional insured on general liability for contractors on common elements
- Current ACORD 25 before work begins; updates at renewal
Vendor categories and risk tiers
Tier 1 — lower risk
Cleaning (common areas), landscaping, pest control — standard $1M GL, workers comp, certificate holder.
Tier 2 — moderate risk
HVAC, plumbing, electrical, painting — $1M GL, additional insured often required, verify completed ops coverage.
Tier 3 — higher risk
Roofing, structural, pool renovation, fire restoration — $2M GL, umbrella recommended, strict endorsement review.
Board review process
- Management collects COIs before vendor starts; board receives compliance summary annually
- Expired or non-compliant vendors suspended until updated
- Reserve project vendors require higher limits and broker verification
- Keep audit trail for insurer and legal — CSV/PDF exports for meetings
Tools for management companies
Self-managed boards often use spreadsheets; professional management companies need scalable tracking. CertGuard gives managers a compliance dashboard, vendor portal, and board-ready exports. Free checklist · Start free trial