Workers Compensation insurance provides coverage for employees/board members/officers/appointed volunteers of the association in the event that one or more of those parties is injured during duty toward the association.
What if my Aasociation has no employees (zero-payroll)?
Even if an association has no physical employees because it contracts all work to independent third party vendors, Workers Compensation is still a very important coverage to maintain. This is because if a vendor is unlicensed and is injured on the job, there is case law (Heiman v. Workers Comp Appeals Board) deeming the association to be the legal employer for that contractor. This leaves the liability on the association in the event of injury of this worker.
This is not to mention that this coverage also extends to appointed volunteers/officers of the association, as well as board members. Many carriers will not extend coverage to board members, so be sure to confirm that all directors, officers, volunteers, committee members and employees are covered by the policy.