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The personal liability of executive committee members is something that executive committees often overlook.
As an executive committee member you have a common law duty of care to all entrants, invited or not, arising from your actions and omissions in connection with your strata scheme.
You also have statutory duties and obligations under a wide range of commonwealth, state and local government laws and ordinances. For example, the duty to provide safe working conditions to contractors entering into your strata scheme to do work on common property under occupational health and safety legislation (even though you may not be the employer). Breaching statutory duties can result in awards of damages and fines against you and the owners corporation, and in extreme cases, imprisonment.
An owners corporation may carry a range of insurance to cover risks including the risk to it and you for breach of your duty. The terms of cover are usually set out in the product disclosure and policy documentation and may include specific exclusions.
Executive committee members may want to consider entering into a Deed of Indemnity to cover gaps in your risk cover as an executive committee member. This type of arrangement is common in the public listed company sector. A deed of indemnity will oblige the owners corporation to make good any loss you suffer, which is not covered by insurance.
Kind regards
Simone Balsara