Serving on a strata committee is a significant responsibility. Committee members make decisions that affect the safety, finances, and wellbeing of every lot owner in the building. When things go wrong — and sometimes they do — committee members can find themselves personally exposed to legal claims from owners, contractors, or other third parties. Office bearers liability insurance is the cover that protects them.

What Is Office Bearers Liability Insurance?

Office bearers liability insurance — also known as committee members liability insurance — covers the directors and officers of an owners corporation against claims arising from decisions or actions taken in their capacity as committee members. It is typically included as part of a comprehensive strata insurance policy.

What Does It Cover?

• Wrongful acts — claims alleging a committee member acted wrongfully, negligently, or outside their authority.
• Breach of duty — failure to fulfil their obligations to the owners corporation or individual lot owners.
• Defamation — claims arising from statements made in the course of committee activities.
• Legal defence costs — the cost of defending a claim, even if it is ultimately unsuccessful.
• Compensation payments — amounts the committee member is ordered to pay following an adverse finding.

Why Do Committee Members Need This Cover?

Many strata committee members are volunteers — owners who give their time to manage the building on behalf of everyone in it. Without office bearers liability insurance, a disgruntled lot owner or contractor could pursue a personal claim against an individual committee member, exposing their personal assets to significant legal costs and potential compensation awards.

This risk is real. Disputes in strata schemes can become serious, and committee members who make decisions about maintenance, levies, by-laws, or contractors can find themselves the subject of formal complaints or legal proceedings.

Is Office Bearers Liability Cover Included in Strata Insurance?

In many cases, office bearers liability is included as part of a comprehensive strata insurance package — but not always. It is important to confirm that your strata policy includes this cover and that the limit is adequate for the size and complexity of your scheme.

Talk to HC Insurance

At HC Insurance, we ensure that the owners corporations we work with have comprehensive cover in place — including office bearers liability — so committee members can make decisions with confidence. Contact us today to review your strata insurance program.