Workers compensation when hiring a sole proprietor

[Gisa Bauschke]

Folks, 

I recently stumbled on a somewhat ridiculous dilemma and I am hoping that  this forum may give me some advice.  We have been investing in  Boston/ Cambridge area for a few years now and it has been  a gratifying experience so far. Recently, we purchased a condo in Cambridge, MA. It requires minimal cosmetic updates. Replace floors, kitchen cabinets, toilet and vanity. No  plumbing changes, no electrical changes.   It's truly so straightforward, that I was prepared to do it myself, however  condo association requires a licensed contractor for all renovations. Our usual GC has upgraded to bigger homes and  will not take  this type of job  - it is too small.  So we found a guy who is a sole proprietor and  does all the work himself.  He is licensed, insured, worked in Cambridge before  and has a great reputation. The condo association approved out reno plans, but they asked for workers compensation insurance. The guy does not have it and does not feel that he needs it. He mostly works alone, sometimes brings in another guy as a helper. In his mind  he is covered with his liability insurance.  Condo association does  not agree and wants to see WC before we start regardless who is working on the unit. They mentioned that we as owners can take  a WC insurance for the specific period of reno of the unit.   That is new to me. Has anybody done that? Where would I even get WC?  Any first hand  experience or alternatives that you may suggest will be very  much appreciated ! 

[Bruce Woodruff]

Quote from @Ryan Normand:

Quote from @Anthony McEvoy:

Workers Comp is not necessary if you do not have employees.  The owner is not going to go after themself if they get hurt.

Yup, that's how it is in AZ, too. I'm assuming most other states have similar laws. Workers comp isn't required for single member LLCs or sole proprietorships with 0 employees. Sounds like the HOA doesn't understand this exemption.

She said he brings in another guy to help occasionally, so he would in fact need to have WC. The HOA is correct in asking for it. The owner/investor can get it to insure themselves against lawsuits.