LEGAL LIABILITY

Legal Liability

As a strata company or body corporate, you’re required by law to repair and maintain common property, including making sure safety equipment is operational. You’re also required to keep up to date with the regular changes to strata obligations. 

If for whatever reason, you forget to make necessary changes to the property and something happens, you could fall victim to costly legal fees.

Circumstance 1

A tenant trips on uneven ground on a pathway on your property and breaks their leg. The tenant decides to sue the strata company for negligence. How will you pay for the legal fees? What about the cost of the injury?

Circumstance 2

The strata company did not adhere to renovation recommendations by the building surveyor, and this negligence has resulted in damage to a tenant’s property. Tenants are requesting compensation. How does the strata company pay for these repairs?

What is Legal Liability Insurance?

Legal Liability Insurance covers compensation for personal injury or property damage as a result of the strata or a members negligence.

Legal Liability claims are considered long-tail claims. It can take years before a claim is settled. So it’s wise to cover your strata company liability limit for the highest amount you can afford to purchase.  

Questions to ask your strata company?

  • When was the last time we reviewed our Legal Liability insurance?

  • Is the limit of liability sufficient?

  • Have we entered into any contract arrangements without verifying insurance requirements?

  • Have we checked whether our contractors who perform work on the common property have the correct insurance in place?

Finding the right Legal Liability Insurance?

It’s easy to get overwhelmed by the number of strata insurance products on the market. You might think, “I’ll just go with the cheapest.” But cheap does not mean the best. 

At Lync Insurance, we are highly knowledgeable in strata insurance and what covers are needed. By guiding you through the policies available, we help you manage the risks of your building.

Have you got more questions about Legal Liability insurance?