I am getting many questions about the change to the Charter Club Booking Agreement form that has been approved by the Board. It appears there is some misinformation being written about the changes that have taken place.
The short answer is that the only substantive addition to the Agreement is for proof of Auto insurance. A Certificate showing proper and current auto insurance was not required in the past. The Board felt that because having auto insurance is a state law, it would be reasonable for contractors to show that they have current auto insurance. This is to be sure the HOA is protected against an auto accident from someone that does not have insurance. There is no required limit on the insurance, so when you hear we have required a $1M policy this is incorrect. All the contractor must do is show proof of current insurance, and it doesn’t matter what the limits are so there is no need to obtain new, or additional insurance. I would like to think every resident would agree that if a contractor drives on site, they should have auto insurance so that in case of an accident the HOA does not have to pay the claim.
All other points in the Agreement are the same as previous years. The HOA has required contractors to have liability insurance with a limit of $1M. This is the same requirement from previous years so if you hear that we changed this requirement it is incorrect. We are requiring the same liability insurance coverage that we have asked for in the past.
There are some residents that don’t want a requirement for insurance from some of the contractors that come on site. For example, some residents don’t think entertainers should have to provide insurance. That can be a point for discussion, but it was not a change in the new agreement. If the residents don’t want to require such insurance, that is possible. The HOA could take the position that our insurance would cover all claims of such entertainers. We have the insurance to do this, so any claims would be paid for by our insurance company. Currently, the Board believes that the entertainers should have their own insurance, so if they have a claim it would be against the entertainer’s insurance company and not the HOA insurance company. It is thought, by the Board, if such claims were against the HOA insurance company our rates might go up. The Board is currently trying to protect the HOA from the costs of claims, especially claims that are not our responsibility. That can only be done if we required insurance certificates from the contractors.
This same policy is required for contractors such as Troon, DRM, Hort Tech, and repair contractors when they come on site. It is an effort to protect the HOA. I am sure no one wants us to cover Troon or Hort Tech for their claims when it is not our responsibility. To make this happen, we require the contractor to carry insurance covering the HOA. These forms are required from the same contractors this year as in previous years.
Again, the Charter Club Booking Agreement is the same as last year except for the addition of showing auto insurance. Since auto insurance is required by law it seemed reasonable to request proof of such insurance.
All other aspects of guests, speakers, and volunteers has not changed. None of this applies to the guests of residents, nothing has changed from the current process. So, if you hear that the HOA is requiring these forms for guests of residents, that too is incorrect information.
Hopefully this clears up the misunderstandings.