Strata committee members play a vital role in managing the day-to-day affairs of their scheme. But with responsibility comes risk. That’s where Office Bearer’s insurance can provide valuable protection.

What Is Office Bearer’s Insurance?

Office Bearer’s insurance provides financial protection for strata committee members if they become personally liable for actual or alleged wrongful acts while carrying out their duties. This could include decisions or omissions made in good faith that later result in a dispute or claim.

While some cover may exist under a strata policy’s public liability section, there is often a gap when it comes to negligence claims made specifically against an individual committee member or the committee as a whole.

The Legal Framework in NSW

The NSW Government has recognised the importance of this protection. Section 88 of the Strata Schemes Management Act 1996 gives owners corporations the ability to take out Office Bearer’s insurance. The legislation states that an owners corporation may insure against:

• Damage to property, death, or injury for which a committee officer could be held liable due to an act or omission committed in good faith
• Misappropriation of money or other property of the owners corporation

Importantly, Office Bearer’s insurance is not mandatory, but it is strongly recommended.

Why Committee Members Should Consider It

Committee members can face legal action from:

• Other strata scheme members alleging mismanagement
• Third parties, whether residing in the property or not

Without insurance, defending such claims could be financially devastating for the individuals involved.

What’s Typically Excluded?

Every policy is different, but common exclusions include claims arising from:

• Known circumstances before the policy was taken out
• Dishonest, fraudulent, criminal, or malicious acts
• Intentional decisions not to maintain insurance policies required by law

Metro Strata’s Recommendation

At Metro Strata, we recommend committee members take out Office Bearer’s insurance to safeguard themselves and their scheme. Selecting the right policy requires understanding what’s covered, what’s excluded, and how it complements existing strata insurance.