If you are responsible for the management of a strata owned facility, where many individual owners occupy part of a larger building, then you know that you have to deal with all eventualities and make sure that you can provide an adequate service to all concerned. You need to appoint a resident unit manager, who can be the contact point for all of these issues and who can help to provide feedback to the rest of the management team. This particular position can be quite demanding, however, especially when you consider all the risks and potential liabilities to which they are exposed. How can you make sure that you are adequately covered so that this service can be provided efficiently and without worry?
Plenty of Risk
Unfortunately, Australia is now a very litigious society, and people are used to lodging a lawsuit at the first opportunity. Of course, it is never possible to account for all eventualities and crucial, therefore, that the resident unit manager has the appropriate insurance policy in place.
Coverage in All Areas
This type of coverage should be two-dimensional, and they should get both professional indemnity and public liability coverage, due to the complexity of their work.
It's not unusual, for example, for claims to be lodged against the manager should somebody slip and fall, or should they claim that equipment in common areas was not maintained correctly, leading to a loss. Public liability insurance can cover the manager against claims that somebody sustained property damage or bodily injury, but it does not, by itself, cover for a breach of professional duty.
This is why the manager needs to have the relevant indemnity insurance in place as well. In this case, they can be protected against any claim for negligence or omission or error when they were conducting their professional duties.
Two in One
It's best to get both of these coverage products provided by one insurance company if possible, as this will help to provide streamlined coverage and support whenever a claim materialises. It's worth remembering that these products can be tailor-made to the individual situation as well, so you should talk with a broker to fully address all levels of exposure before applying for coverage.
This type of environment can be a minefield for management companies without the proper level of protection. It's best to anticipate the worst-case scenario if you want to sleep more easily at night.
For more information about resident unit manager insurance, work with a local insurance company.