Insurance: Public Liability
Legislation – Strata Titles Act
Click on Legislation above, to view strata title legislation and hints.
Legislation – Community Titles Act
Click on Legislation above, to view community title legislation and hints.
Best Practice
We recommend that regular single-storey groups have public liability cover of at least $10 million in accord with the minimum requirements of the Act. Given the small additional cost to insure for $20 million this greater cover is well worth considering.
For groups that are two-storey and higher, it is recommended that they take out cover for a minimum of $20 million.
Higher covers may be available for Corporations who consider they have special risks eg: swimming pools.
Strata Titles Act (plan number less than 20,000)
Public Liability: Duty to insure against liability
Section 31 of the Strata Titles Act spells out a Strata Corporation’s need to insure against legal liability.
(1) A strata corporation must keep itself insured against liability in tort.
(2) The insurance cover must be for at least $10,000,000 or such greater amount as the regulations may prescribe.
What does this mean?
Liability in Tort: Is when a person or party has the right to sue the Corporation for injury or damages.If, for example, a person fell down a common stairway due to badly damageed concrete steps then they, their family or estate, would be entitled to commence legal action.
Community Titles Act
Public Liability: Duty to insure against liability
Section 104 of the Community Titles Act spells out a Community Corporation’s need to insure against legal liability.
104—Other insurance by community corporation
(1) A community corporation must insure itself—
(a) against risks that a normally prudent person would insure against; and
(b) against such other risks as are prescribed by regulation. Maximum penalty: $15 000.(2) The amount of the insurance must be the amount that a normally prudent person would insure for but in the case of bodily injury must be at least ten million dollars or such greater amount as is prescribed by regulation.
What does this mean?
Liability in Tort: Is when a person or party has the right to sue the Corporation for injury or damages.If, for example, a person fell down a common stairway due to badly damageed concrete steps then they, their family or estate, would be entitled to commence legal action.
Strata Division – one lot above another
Community titled Strata Divisions are treated the same as a Strata Titled group. The corporation owns the buildings as common property and is potentially liable for any injury on this and other common property. Lot owners in strata divisions are responsible for the public liability insurance within their lot boundaries ie: within their walls and lot subsidiaries. See Boundaries
For regular lot by lot Community Corporations owners are responsible for the public liability insurance within their lot. See Boundaries
