Protect Against Condo Vendor Mistakes

Vendor Insurance Protects Corporations and Owners

December 2017

Construction and renovations are serious business.  They are expensive and, when accidents occur, condo corporations can have an unanticipated level of responsibility or accountability.

A truck may back into an outer wall, a snow shovel may tear up a driveway or a visitor may fail to apply their car brakes and damage the underground parking area.  A can of paint may tip over when painting an outer wall and land on a car while dropping paint on a dozen balconies along the way.

In all cases, someone is responsible for the damage caused and compensation to those affected.  Ideally, responsibility would reside with the vendor causing damage IF they had proper insurance.

Without insurance to cover the damage caused, cost of repairs may have to be paid by the condo corporation that hired the vendor.

It is the responsibility of the condo corporation to ensure vendors working on their property are financially accountable for damage or injury they may cause, or for failure to complete work as expected.  If the vendor is not financially accountable, it is the condo corporation that is accountable.

Vendor Due Diligence

  • Ensure vendors provide documentation of insurance coverage to cover mishaps
  • Insist on a vendor contract or agreement specifying performance expectations
  • Obtain records verifying vendors are properly licensed for work they are undertaking
  • Review documents for signs of fraud such as falsely stated insurance coverage