Unlike in a residential building holding Strata Insurance is mandatory under each state’s relevant strata legislation. Perhaps your strata insurance provider was concerned that your scheme was not complying with the legislation?
In general terms, an Owners Corporation is responsible for the following main insurances :
- The main building and any outbuildings
- Public liability
- Workers Compensation
- Voluntary workers cover
More info and links to the legislation is here: https://www.strataman.com.au/insure.html