While Public Liability is a mandatory cover for both Residential and Commercial Strata policies, confusion often arises regarding the extent of cover and who pays the excess in the event of a claim.
Whitbread recently received a query from a NSW property owner, courtesy of LookUpStrata…
“What does Public Liability cover?”
Public Liability under a Strata policy insures against:
- The death or injury to a person, or
- damage to property;
for which the Owners Corporation (OC) could be held legally responsible and required to pay compensation for.
“If a claim is made against the Public Liability section of a Strata Insurance policy, who pays the excess?”
If an excess is applicable under the policy, it is generally paid by the Insured.
“If there has been a spillage in a common area which has not been cleaned properly, and an individual is injured due to slipping, are the owners protected by Public Liability? If so, does an individual owner pay the excess of the OC Committee collectively?”
Strata Insurance policies are intended to cover the OC for losses that occur in a common area that they can be held legally responsible for. In the aforementioned scenario, a claim may be lodged under the Public Liability section of the Strata policy and the insurer will consider if there is any liability attaching to the OC. If an excess is to be paid, it will be paid by the Insured.
Public Liability insurance should also be considered by individual lot owners for any special circumstances involving their lot and not covered by the insurance taken out by the OC.
For more Strata Insurance and risk advice please contact Whitbread Insurance Brokers on 1300 424 627 or info@whitbread.com.au.
This insight article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.
