Question:
What needs to be included in our contract with a property management company to protect our HOA from negligence and faulty repairs caused by their employees who maintain our property? The workers are generalists and not contractors or vendors, but on-site staff provided by the property management company. Need to know more about Indemnity and Liability clauses to add in our Property Management contract. Thank you.
– Stephanie
Answer:
Hi Stephanie,
It may be wise to include an indemnity clause that clearly outlines each party’s responsibilities in case of legal claims or losses. You may specify that the property management company will indemnify and hold harmless the HOA from any claims, damages, or liabilities arising out of the actions or negligence of their employees, vendors, and subcontractors. You may also clearly define the scope of indemnification, including legal costs and expenses.
It may also be helpful to outline the liability limits for the property management company in case of any damage, loss, or injury caused by their employees, vendors, and subcontractors. Specify the types of damages covered and any monetary caps on liability. Clarify whether the property management company is responsible for insurance coverage to address potential liabilities. It may also be a good idea to include insurance, such as general liability insurance, professional liability insurance, and workers’ compensation insurance, which the property management company must maintain to protect the HOA from liability.
However, it’s best to consult a legal professional while creating a contract as we are not lawyers.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
