Managing a strata community is complex. Strata managers and owners corporations carry responsibility for the safety, maintenance and wellbeing of entire buildings and the people who live and work in them. With that responsibility comes exposure to risks that can result in significant financial and reputational consequences.
The right insurance cover helps safeguard communities and provides confidence that if something goes wrong, there is a clear path to recovery. These are some of the key covers and risks that strata professionals should consider.
Liability and property protection
Strata insurance is essential to protect buildings, shared assets and common property. It helps cover the cost of repairing damage caused by an insured event and ensures common contents such as foyers, lifts and recreational facilities are protected.
Another critical element is public liability. If a resident, visitor or contractor suffers injury or damage to property within the common areas, the owners corporation may be held legally responsible. Public liability insurance helps cover associated legal and compensation costs, protecting the financial stability of the community.
Professional indemnity exposures
Strata managers often provide advice and guidance to committees, and play a central role in the upkeep of buildings. If there is a dispute over that advice, or if maintenance requests are not actioned in time and result in loss or injury, claims of negligence can arise.
Professional indemnity insurance can help defend against such claims, depending on the scope of the policy. Even where committees make the final decisions, strata managers may still be drawn into legal action. Recognising this risk is an important part of protecting both businesses and the communities they serve.
Cyber risk
As strata management becomes increasingly digital, new risks are emerging. Strata managers hold large volumes of sensitive information – from owner contact details to levy payment records – making them attractive targets for cybercrime.
The Australian Cyber Security Hotline received an average of 100 calls a day according to the Australian Signals Directorate’s Annual Cyberthreat Report 2023-2024, while the average self-reported cost of a cyber-crime incident was $49,600 for small businesses. For medium sized businesses, that figure rose to $62,800, while larger enterprises shelled out$63,600. Beyond the financial cost, these incidents can cause significant disruption and reputational damage.
Hardening cyber security measures will help make strata businesses less attractive to criminals. And if an attack does occur, cyber insurance can help cover losses and support recovery.
Setting the benchmark in strata protection
Insurance plays a vital role in ensuring strata communities are financially resilient. Regular reviews of cover help owners corporations and managers stay confident that their buildings, common property and people are protected.
At Resolute, our aim is to set the benchmark in strata by providing clarity and confidence in insurance solutions – tailored to the needs of strata communities. Please contact your Resolute Property Protect insurance broker for further advice on navigating insurance claims or if you would like to discuss a particular risk in greater detail.
T: 1300 668 033
E: info@resolutepropertyprotect.com.au
Important notice
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 Resolute Property Protect | ABN 53 157 850 827 | Licence Number 425 966 for further information or refer to our website.