Public liability insurance protects the body corporate where it may become legally liable to pay compensation because of injury, death, illness or damage connected to common property.
Trustees should not ignore this section of the policy. A serious liability claim can be much larger than an ordinary property claim.
Why public liability matters
Common property creates exposure. A visitor could fall on a staircase, a gate could damage a vehicle, or a maintenance issue could cause injury or loss. If the body corporate is legally liable, public liability cover may become important.
What trustees should check
- The public liability limit.
- Whether the limit is in line with the scheme’s risk profile.
- Exclusions and special conditions.
- Whether contractors carry their own liability cover.
- Whether common property maintenance risks are being managed.
- Claims history and any recurring safety issues.
Common property examples
- Slip-and-fall incidents on stairs or walkways.
- Gate, garage door or access control incidents.
- Falling branches, tiles or building elements.
- Swimming pool, lift or parking area incidents.
- Contractor or visitor injuries connected to common property.
Public liability is not maintenance cover
Liability insurance does not remove the trustees’ duty to maintain common property. Poor maintenance can increase the chance of claims and make the insurer ask more questions.
Common questions
Is public liability the same as building insurance?
No. Building insurance deals with insured property damage. Public liability deals with legal liability to third parties, subject to policy terms.
Does it cover trustee decisions?
Not necessarily. Trustee liability or directors and officers style cover is different and should be reviewed separately.
Should contractors have their own liability insurance?
Yes, trustees should request proof of cover for contractors working on common property where appropriate.