Body Corporate Insurance Glossary
Office Bearers' Liability
Office bearers' liability cover (sometimes called committee liability or directors & officers cover for body corporates) protects committee members from personal liability for decisions made in their role on the body corporate committee. It typically responds to claims of mismanagement, breach of duty, or negligent decision-making.
Without this cover, committee members could face personal financial liability for decisions taken in good faith on behalf of the body corporate — for example, signing off on contractor work that later proves defective, or being challenged by an owner for a levy decision.
Cover usually includes legal defence costs, which are often the bulk of any actual financial impact even when the committee is ultimately vindicated.
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