5 Strategies for Condo Boards to Detect and Deter False Injury Lawsuits

Construction work on your condo building shouldn’t give you sleepless nights. Fraudulent injury claims, however, just might. While legitimate accidents do happen, boards are being served more and more lawsuits by workers claiming injuries that never occurred. These claims drain reserves and spike insurance premiums. Here’s how to protect your building.

1.Vet Your Contractors Thoroughly

Your first line of defense against fraudulent claims is contracting with reputable contractors. A quality contractor maintains proper safety protocols, trains workers, and keeps detailed records of who’s on-site and when.

Consider these screening steps:

• Maintain a preferred vendor list for building-wide projects and unit renovations
• Document problem contractors to avoid repeat mistakes
• Verify safety certifications and ensure workers have the required training

The right contractors will do more than just outstanding work. They will help you avoid legal headaches.

2. Scrutinize Insurance Coverage Carefully

Don’t just glance at a certificate of insurance. Your board needs to dig deeper to ensure adequate protection.

Review the actual policy, not just the certificate, to identify areas of insufficient coverage. For exterior work, request an umbrella policy of at least $10 million over the general liability limits. For interior work, aim for $5 million.

Watch out for exclusions that could shift liability to your building:

• Policy exemptions that leave you exposed during injury claims
• Coverage gaps your building’s insurance would need to cover
• Contract loopholes that invalidate insurance protections

For unit renovations, your alteration agreement should clearly establish that apartment owners bear liability for any injuries during construction.

3. Maintain Continuous Insurance Coverage

Even brief lapses in your building’s insurance create lasting problems. Some boards have seen premiums double after coverage lapses during disputes.

Insurance carriers are increasingly strict about coverage gaps. Some underwriters automatically decline applications from buildings with any lapse—even two weeks. You might struggle to find coverage at all.

Work closely with your insurance broker to ensure your policy covers construction accidents and renewals happen seamlessly.

4. Install Strategic Security Cameras

Security cameras deter fraudulent claims and help defend against legitimate ones. Beyond construction claims, cameras protect against slip-and-fall lawsuits that can cost thousands.

Smart camera placement includes:

• Public areas with clear, unobstructed views
• Entry points where workers access the building
• High-traffic zones where accidents might occur

During facade work, scaffolding can block camera views, so plan accordingly. Buildings with comprehensive security systems often secure competitive insurance quotes more easily.

5. Report Incidents Immediately

The moment something seems off—whether a minor incident or suspicious injury claim—alert your property manager. Waiting even a day compromises your ability to investigate and defend against lawsuits.

Prompt reporting allows you to gather evidence while memories are fresh, review security footage before it’s overwritten, and document scenes accurately. Make incident reporting standard practice for all board members and staff.

Your Building Deserves Better Protection

False injury lawsuits threaten your building’s financial stability and impact every resident’s bottom line. By implementing these strategies, your board can significantly reduce vulnerability to fraudulent claims while maintaining legitimate safety standards.

Don’t wait for a suspicious lawsuit to land on your desk. Contact Zicklin Contracting to discuss how proper contractor partnerships and construction protocols can protect your building from costly legal battles while ensuring quality renovation work.