Office bearers liability insurance for strata committees

Office bearers liability insurance covers the people who volunteer to run a strata scheme, the committee members and office holders, if someone claims a decision they made in that role was wrong and caused a loss. It is a section of a strata policy, not a separate product, and it is usually optional.

Committee members are owners giving up their evenings, and most never face a claim. The cover exists for the rare case where one does: an owner alleging the committee mishandled a repair, a contractor disputing how a tender was run, a decision that cost the scheme money. This guide quotes the office bearers section of one real policy, the Strata Community Insurance Strata Insurance PDS and Policy Wording (SCI-PPW-04/2026), Section 6, pages 41 to 43.

What does office bearers liability insurance cover?

It pays the loss, and the legal costs of defending the claim, when a claim is made against an office bearer for a "wrongful act". The policy defines that broadly:

"any error, misstatement, act or omission, or neglect or breach of duty made, committed, attempted or allegedly made, committed or attempted by You"

Definition of Wrongful Act, SCI-PPW-04/2026, page 43

Loss includes "damages, judgements, settlements, orders for costs and Defence Costs" (page 43). Defence costs include the cost of an office bearer being legally compelled to attend an official investigation into the scheme's affairs.

Who counts as an office bearer?

In this policy (page 43), an office bearer is:

• a person appointed by the strata community as an officer or member of its committee or council
• a strata manager when acting in the capacity of an officer or committee member
• a person invited by a committee member to help manage the scheme's affairs

It does not include a strata manager, or any other contractor, "when acting in their professional capacity". A manager's professional mistakes are a matter for the manager's own professional indemnity insurance. The same goes for the scheme's insurance broker.

What does "claims made" mean?

This section works differently from the rest of the policy. The building cover responds to damage that happens during the period of insurance. The office bearers section responds to claims that are first made, and reported to the insurer, during the period of insurance:

"Section 6 responds to Claims first made against You during the Period of Insurance and notified to Us during that same period."

SCI-PPW-04/2026, page 41

Two things follow. A claim made after the cover has lapsed is not covered, even if the decision was made while it was in force. And facts the committee already knew about before the cover started, which could give rise to a claim, are excluded (page 42). Continuity matters more for this section than for any other.

What is not covered?

The exclusions on page 42 include:

• dishonest, fraudulent, criminal or malicious acts, although the costs of successfully defending such a claim are covered
• claims for death, injury or property damage, which belong under the liability section of the policy
• an intentional decision not to take out the insurance the strata legislation requires
• defamation
• fines and penalties
• personal profit or advantage an office bearer was not legally entitled to
• claims arising from an office bearer's conflict of duty or interest
• claims brought in a court outside Australia

How much cover do committees take?

The limit is a sum insured chosen by the owners corporation and shown on the policy schedule. If a claim uses it up, this policy reinstates it once (page 41), so the most it pays in a year is twice the sum insured, including legal costs (page 42). An excess can apply to each claim.

Is office bearers liability compulsory?

It is generally not one of the covers strata legislation requires, unlike building insurance and public liability. Whether to take it is a decision for the owners corporation. In New South Wales, for example, the Act lists it as optional. Our guides for Queensland, Victoria, Western Australia and South Australia set out what each state does require.

Can it be added to a quote here?

The online quote on this site prices the building, liability, voluntary workers, fidelity guarantee, government audit and legal expenses, and lot owners' fixtures sections. Office bearers liability is not in the online quote yet. If your committee wants it, tell us about the building and a broker will ask the insurer for it.

For the rest of the policy, see what strata insurance covers.

General information only. This guide summarises one insurer's policy (edition 04/2026) and leaves out terms, conditions and limits that may matter to your scheme.