Tuesday, July 11, 2023

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Office Bearers’ Liability Insurance 101

Office Bearers’ Liability coverage is a component of strata insurance policies designed to protect individuals who hold positions of responsibility within a strata corporation. It provides coverage for legal costs and potential damages if an office bearer is held personally liable for a wrongful act or omission in their role.


Office Bearers’ Liability coverage is crucial for attracting qualified individuals to serve in positions of responsibility within strata corporations. It provides financial protection for office bearers who may face personal liability claims arising from their actions or decisions made in their official capacity.


Office Bearers’ Liability coverage is designed to safeguard the personal assets of individuals who serve as office bearers, such as directors, officers, committee members, and trustees in the strata corporation.



This insurance typically covers legal defence costs, settlements, and judgments resulting from claims made against office bearers for wrongful acts, errors, or omissions committed while performing their duties. It protects against allegations of negligence, mismanagement, breach of fiduciary duty, discrimination, defamation, and other similar claims.


Claims Examples


Here are some situations where Office Bearers’ Liability coverage may come into play:


  • A director is accused of making a decision that causes financial harm to the strata corporation, and the owners bring a lawsuit against them.

  • A committee member is accused of defaming a resident during a meeting, leading to a defamation lawsuit.

  • An officer is alleged to have failed to properly maintain common property, resulting in injury to a resident, and a negligence claim is filed.



Strata insurance policies often have exclusions and limitations, which can vary depending on the specific policy and insurer. Common exclusions may include intentional acts, fraud, personal profit or advantage, criminal acts, and acts beyond the scope of authority. It is essential to review the policy terms to understand the coverage provided.


Interplay with other coverages

Office Bearers’ Liability coverage is typically included as part of a comprehensive Strata Insurance policy. Other components may include property insurance for common areas, liability insurance for the strata corporation, and coverage for individual unit owners. These covers work together to provide a broad insurance package for the strata corporation.


Next steps

It is important to consult with an insurance professional or broker who specialises in Strata Insurance to ensure that the specific needs of the strata corporation are adequately met. They can help tailor a policy to target the unique requirements and provide guidance on the extent of Office Bearers’ Liability coverage needed.


Laura Van Houten

National Client Manager


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Honan Insurance Group Pty Ltd is now fully owned by Marsh Pty Ltd. To find out more, speak to your broker or read the announcement