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Public Liability Insurance

Public Liability insurance provides cover for claims of compensation as a result of personal injury or property damage. If an incident occurs in connection with the ownership of a strata property, then representatives of the owners corporation are potentially liable for damages and therefore insurance is essential.

While insurance is important in case a claim is lodged, under the Strata Schemes Management Act 1996, Owner’s Corporations are legally required to ensure their property is adequately covered against death or injury to a person or damage to property for which they could be held responsible.

87 What other insurance must an owners corporation take out?

(1) In addition to insurance taken out by an owners corporation in accordance with Division 2, the owners corporation must take out insurance: (a) in respect of any occurrence against which it is required by law to insure, including any insurance required by the Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998 to be taken out, and (b) in respect of damage to property, death or bodily injury for which the owners corporation could become liable in damages, and

(c) against the possibility of the owners becoming jointly liable by reason of a claim arising in respect of any other occurrence against which the owners corporation, in accordance with a special resolution, decides to insure, and

(d) against any damages for which the owners corporation could become liable by reason that, without fee or reward or any expectation of fee or reward, a person acting on behalf of the owners corporation does work in a building or on the common property in the strata scheme, and

(e) of any other class prescribed by the regulations for the purposes of this subsection.
Maximum penalty: 5 penalty units.

(2) Insurance taken out in accordance with subsection (1) (b) must be for a cover of not less than $10,000,000 for each event in respect of which any claim or claims may be made or, if the regulations provide for another amount, that other amount.

(3) Regulations made for the purposes of subsection (2) may provide that the amount is to be calculated or determined in the prescribed manner

Joseph Sharbeen is the Account Director with the Honan Insurance Group, a valued partner of The Strata Agency.

“While the legislation requires a cover of $10,000,000, the minimum limit of liability that we would normally recommend may be more. Legal cost associated with defending a public liability court action can be costly and courts are known to be generous when awarding compensation,” said Joseph.

The Honan Public Liability Policy provides indemnity in respect of any claim for compensation or expenses which the insured becomes legally liable to pay in relation to:

1. Personal injury, which includes:
   • Bodily Injury, Death, Sickness, Shock, fright, mental anguish, psychiatric or psychological disorder, mental injury.
   • False arrest, false or wrongful detention or imprisonment, malicious prosecution or humiliation.
   • Publication of Libellous or slanderous comments.
   • Wrongful eviction or entry or other invasion of privacy.


2. Property Damage, which include:
   • Physical damage to or loss or destruction of tangible property including any subsequent loss of use from the damage or destruction.
   • Loss of use of tangible property, which has not been physically damaged or destroyed.

If you have any further questions regarding public liability insurance, please contact your strata agent at The Strata Agency.