As HOA management, you want what’s best for your members. Period. However, during leaner financial years, it can be difficult to always afford top-quality services. You might, after viewing portfolios and weighing your options, think about going with an unlicensed contractor to get your HOA’s needed work done. If their work in the past hasn’t been bad, you’ll probably come out okay, right?


We at Gassen, as a property management service company, are here to tell you that hiring an unlicensed, uninsured contractor is absolutely never worth the risk. From damage claims to workers comp to ensuring a high-quality job is completed, there are countless reasons why proper licensure and insurance is crucial in any contractor. We explain further below.

License and Insurance Shows You Can Trust Your Contractor

You wouldn’t trust anyone to drive a car on their own without a licence, would you? They could pose a huge hazard to both themselves and the drivers with whom they share the roads. Why, then, would you allow a contractor to enter your neighborhood, potentially operate heavy machinery, and direct an entire team of workers without a licence showing they know how to do so?


Licensure and insurance shows that you can trust that your contractor both treats its workers well and can get the job done right. What sorts of insurance and licensure should your contractor carry, and why?


●        Workers’ compensation. Never agree to do business with a contractor who does not carry this type of insurance. Workers’ compensation ensures that, should an employee be injured on the job, he or she can collect money from the insurance company to pay for medical care and lost wages. Working with a contractor who does not carry this type of insurance could leave your HOA liable financially if a worker gets injured while on the job.

●        Liability insurance. Generally, liability insurance for small businesses in Minnesota covers bodily or reputation-related injury, property damage, and misleading advertising. This means, should your HOA feel victimized in the above fashion by the company with which you do business, their liability insurance could help enable them to pay for damages, depending on the specific policy carried.

●        Industry-applicable insurance. The more insurance your contractor carries, the better. Look into your contractor’s field of work and see what industry standards are. This will help you determine how your contractor measures up to other candidates.

Need To Find a Reputable Contractor? Gassen Can Help

We’re a multipurpose accounting property management and online property management company that has brought excellence to countless neighborhoods in the Twin Cities and beyond. Give us a call today at 952-922-5575.