This article discusses whether office bearer insurance gives committee members unfair protection compared to ordinary lot owners.
Question: Does office bearer insurance give committee members unfair protection compared to lot owners?
Most committee members have office bearer insurance that the lot owners fund through their levies. It appears this cover protects committee members if someone challenges their decisions or actions. As a result, it can feel like committee members can say almost anything, while ordinary lot owners do not have the same legal protection. Is this imbalance fair, and does office bearer insurance allow committee members to act with less accountability than other owners?
Answer: The goal of the insurance isn’t to favour committee members but to ensure that people feel comfortable volunteering for these roles.
Office bearer insurance isn’t intended to give committee members more rights than other owners or create any kind of imbalance. The cover exists because committee members assume personal liability risks when they volunteer to make decisions on behalf of the scheme. Owners aren’t exposed to those same legal responsibilities, which is why the insurance is tied to the role rather than the individual.
It’s also worth noting that office bearers liability policies include exclusions — for example, some policies exclude defamation — so the protection isn’t unlimited. In addition, many owners may have some level of personal liability cover under their landlord’s contents or landlord’s insurance policy, and they should check with their insurer to see what protection they already have.
The goal of the insurance isn’t to favour committee members but to ensure that people feel comfortable volunteering for these roles without facing unreasonable personal risk.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in the February 2026 edition of The NSW Strata Magazine.
Have a question or something to add to the article? Leave a comment below.
Read next:
- NSW: Q&A Owners Corporation Insurance Requirements in Strata
- NSW: Q&A Strata Manager Insurance Commissions
- NAT: Strata Insurance Commission in Australia: Is transparency enough?
Visit our Strata Insurance, Strata Committee Concerns OR state-specific strata information, take a look here.
After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.
