Protecting Your Strata Members From Mistakes
In a strata company, an office bearer is a person who has been appointed to hold an official position on the strata committee. These individuals are usually responsible for managing and making decisions about the day-to-day operations of the strata company. However, strata members can be held personally responsible by third parties (such as lot owners) for errors, omissions, or negligence that causes physical or financial damage.
Being held personally responsible can result in serious consequences for an individual if they don’t have the financial capacity to cover court fees, defence expenses, and potential compensation payouts. Whether or not the office bearer is at fault, they will still need to defend themselves. This can deter capable and well-intentioned individuals from participating in office bearer roles for a strata company. This is where office bearers’ legal liability insurance comes in.
Office Bearers' Legal Liability Insurance for Strata Companies
Office bearers’ legal liability insurance provides coverage for office bearers and strata committee members. It pays compensation for wrongful acts, errors or omissions in carrying out the duties of the strata company. It can also provide protection for failures to comply with laws or regulations.
By having office bearers’ legal liability insurance in place, your strata company provides a safety net for its committee members. This not only protects individuals from the financial burden of unexpected legal claims but also creates a more confident and functional strata committee.
Although not compulsory insurance, we recommend it. Officer bearers’ legal liability insurance protects you and your strata members from the loss of paying compensation or legal representation. Get in touch with our strata specialists for more information and quotes about our insurance policies. We have over 60 years of combined strata experience and can help you find the right policy for your strata company.
