$10m insurance for office bearers?

We have $1,000,000 for ‘office bearer’s liability’ and $20,000,000 for ‘legal liability’ (IE 3rd party liability). I think those amounts are pretty standard though we are just over 100 units. 

You’re possibly right in your assumption that the Broker was just chasing a higher commission because $1M is the norm., although it will all be for naught as you’re again right in concluding that any illegal actions by Committee Members collectively or individually aren’t covered at all, and nor is any penalty that a Court may subsequently issue to any of them in circumstances where the legal defense that IS afforded under the Liability Policy is unsuccessful.

Furthermore, the term “illegal” is pretty broad, and includes things like Committee Members behaving dishonestly, maliciously, fraudulently, libelously, and by doing things as part of their role that improperly benefit them, collectively or individually.

So to conclude, if your Committee really does comprise “pretty dodgy people”, then NO amount of Office Bearers’ Liability Cover will be of benefit.

Dech – I take your point about Strata Managers, although wonder whether some omit to properly advise their Clients (Owners Corporations) simply because they themselves don’t know even the basic tenets of Strata Legislation.

With regard to Office Bearers “unawareness” being a defense, I seem to recall something in Law about a persons lack of awareness about a legal requirement only being a defense if it (the law) was not known to the person, and it had not been published or been otherwise reasonably accessible to them; that could hardly be claimed by Executive Committee Members or a Strata Manager for that matter with regard to the provisions of Strata Legislation.

Further, I can’t agree with advice about actions in good faith being a defense for an illegality, in fact our Insurer’s product disclosure statement makes it pretty clear that “any dishonest or fraudulent act, criminal act or malicious act or omission” by an Office Bearer renders that component of the policy null and void.

Guys, the question that you may wish to ask yourselves, ‘if I were a director of a company, and could be sued for a decision I did or didn’t make, would I prefer to be appropriately insured’

The Executive Committee should be considered to be much like a board of directors.

I have witnessed Executive Committee Members being sued personally and collectively for decisions that they have made, despite legal advice to suggest not to, while the decision was not illegal. The individual EC members legal expenses were covered by the OB cover of the owners corporation.

The big issue that I am exposed to is where the EC don’t engage with or consult their strata managers, being professional, trained strata managers, that either have proper answers for their clients and or access to appropriate resources or consultants (lawyers, engineers etc). Most Strata Managers that are worth their salt are more than happy to provide good sound advice or encourage obtaining the needed information.