When an HOA hires a landscaper, roofer, snow removal company, pool maintenance company, electrician, plumber, security provider, or other contractor, the association is bringing outside risk onto community property. A Certificate of Insurance, often called a COI, is one of the simplest tools an HOA board or property manager can use to confirm that the vendor has insurance in place.
An HOA should require a Certificate of Insurance from every vendor before work begins. The COI should match the vendor contract, show active policy dates, list appropriate limits, and include proof of Additional Insured status when required by contract. For higher-risk vendors, the HOA should also request endorsements and review the requirements with an insurance professional.
A COI is not the insurance policy itself. It is a document that shows certain coverages, policy dates, limits, and insurance companies. A certificate of insurance is generally issued for information purposes and does not create new rights for the certificate holder or change the policy terms.
This is why HOAs should not just “collect a certificate” and put it in a folder. The association should know what to request, what to review, and what to keep updated before work begins.
Here are the basic elements that an HOA should consider when requiring Certificates of Insurance from vendors.
Vendor Legal Name
The name on the Certificate of Insurance should match the name of the company in the vendor contract. If the contract says “ABC Landscaping LLC,” but the COI lists a different company name, trade name, or individual, the HOA should ask questions before approving the vendor.
This helps avoid confusion if there is a claim. The association wants to know that the company doing the work is the same company that has the insurance.
Certificate Holder
The Certificate Holder section should list the homeowners association correctly. This may include the legal name of the HOA, the management company if applicable, and the mailing address where notices should be sent.
This does not automatically make the HOA an insured under the vendor’s policy. It simply identifies who requested the certificate and who should receive the document.
General Liability Insurance
General liability insurance is one of the most important coverages to request from vendors. It may respond if the vendor causes bodily injury or property damage during its operations, depending on the policy terms.
For example, if a contractor damages a common area structure, causes a trip hazard, or creates damage while working on association property, the vendor’s liability coverage may be important.
The HOA should review the policy limits, policy dates, and type of work being performed.
Additional Insured Status
Many HOAs request to be named as an Additional Insured on the vendor’s general liability policy. This is different from being listed as a Certificate Holder.
Additional Insured status generally must be provided by an endorsement or by policy wording that grants that status when required by contract. A COI by itself does not provide Additional Insured status. The Nonprofit Risk Management Center recommends asking for a copy of the additional insured endorsement when that status is requested.
If the vendor’s contract requires the HOA to be added as an Additional Insured, the board or manager should ask the vendor’s insurance agent to provide proof of the endorsement, not just a note on the certificate.
Workers’ Compensation Insurance
Workers’ compensation coverage is important when a vendor has employees working on the property. If a vendor’s employee is injured while performing work for the community, the HOA does not want to discover later that the contractor had no workers’ compensation policy.
This is especially important for vendors performing physical work, including roofing, tree trimming, snow removal, construction, maintenance, electrical work, plumbing, and pool service.
If the vendor says they are exempt or have no employees, the HOA should ask for written confirmation and discuss the situation with its insurance professional.
Commercial Auto Insurance
Some vendors bring vehicles onto association property. This can include trucks, vans, trailers, snow plows, maintenance vehicles, and delivery vehicles.
Commercial auto insurance may be important if the vendor’s vehicle causes damage or injury while being used for business purposes. HOAs should especially pay attention to this coverage for snow removal companies, landscapers, towing vendors, construction vendors, and any contractor regularly driving through the property.
Umbrella or Excess Liability Insurance
An umbrella or excess liability policy can provide additional limits above the vendor’s underlying liability policies. This may be helpful for vendors performing higher-risk work, such as roofing, major construction, tree removal, elevator work, pool maintenance, security, or snow and ice services.
StarNet’s HOA Property Insurance page notes that umbrella or excess liability can add extra limits above general liability and other liability coverages for communities that want stronger protection against severe claims.
Policy Dates
Every COI should be reviewed for effective dates and expiration dates. A certificate that expired last month does not help the association today.
The HOA should not allow a vendor to begin work unless the policies are active. For ongoing vendors, the association should track expiration dates and request updated certificates before renewal.
This is especially important for annual contracts such as landscaping, snow removal, pool maintenance, janitorial services, and property management-related vendors.
Coverage Limits
The HOA should decide what insurance limits are required before the vendor is hired. A small vendor performing low-risk work may not need the same limits as a roofer, construction contractor, security company, or snow removal provider.
The contract should clearly state the minimum limits required for general liability, auto liability, workers’ compensation, and umbrella or excess liability if applicable.
The certificate should then be compared against the contract.
Description of Operations
The Description of Operations section should match the work being performed. If the vendor is hired for roof repairs, the certificate should not only describe unrelated office work. If the vendor is hired for snow removal, the description should not be vague or incomplete.
This section may also reference the HOA as Additional Insured when required by written contract, but that wording should still be supported by the proper endorsement or policy language.
Waiver of Subrogation
Some contracts require a Waiver of Subrogation. This means the vendor’s insurance company may give up certain rights to recover payments from the HOA after a covered loss, depending on the policy and endorsement.
Not every policy automatically includes this. If the HOA requires it, the board or manager should ask for proof that it is included where needed.
Written Vendor Contract
The COI should support the vendor contract, not replace it. The contract should explain the insurance requirements, indemnification wording, scope of work, safety expectations, and what happens if insurance is cancelled or not renewed.
A certificate is easier to review when the contract clearly states what the vendor must provide.
Before Work Begins
The best time to request a Certificate of Insurance is before the vendor starts work, not after a problem occurs.
The HOA should make this part of its vendor approval process. No COI, no approval. No required endorsement, no start date. No active coverage, no access to the property.
This protects the board, the budget, and the homeowners.
Renewal Tracking
For vendors who work with the association throughout the year, one certificate is not enough. Insurance policies expire. Vendors may change carriers. Limits may change. Coverage may be cancelled.
The HOA or management company should keep a simple renewal calendar and request updated COIs before expiration. This can be done monthly, quarterly, or whenever vendor policies are approaching renewal.
High-Risk Vendors
Some vendors deserve extra attention. These may include roofers, general contractors, tree removal companies, snow removal vendors, elevator contractors, pool vendors, security companies, and any contractor working with electrical, structural, or life-safety systems.
For these vendors, the HOA may want higher limits, stronger contract language, Additional Insured endorsements, waiver of subrogation, umbrella coverage, and a more detailed review by an insurance professional or legal counsel.
Record Keeping
The HOA should keep copies of all Certificates of Insurance, endorsements, contracts, renewal requests, and related emails. If a claim occurs, these records can help show what the association requested and what the vendor provided.
Good record keeping is also helpful when the board changes, a new property manager takes over, or the association reviews its insurance program.
How StarNet Insurance Group Can Help
Vendor insurance requirements are only one part of HOA risk management. Your association also needs to understand its own HOA master policy, general liability, D&O, crime/fidelity, workers’ compensation, umbrella, and other coverage needs.
At StarNet Insurance Group, we help homeowners associations review insurance options and build coverage strategies that fit their buildings, common areas, board responsibilities, and budget. If your HOA is hiring vendors or reviewing its master insurance program, we can help you understand what questions to ask before a claim happens.
To schedule a consultation, please call StarNet Insurance Group at (312) 445-7777.
