Do we need Workers Comp Insurance?

Our Owners Corporation needs to know if insurance laws and requirements for strata title properties have changed. At our recent AGM an Insurance Certificate of Currency was presented by the Strata Manager (SM).

We noted that Workers Compensation (WC) cover was “not selected” and we asked the SM why. A few owners said they felt it was extremely unusual not to have WC cover as in previous years the previous SM always  included WC insurance cover. 

I agreed with them because I have owned and sold 3 strata units and each of my previous Owners Corporations have always been covered for WC insurance. The SM replied that he always relies on the advice of the insurance company.

Owners were very surprised by this statement because advice on insurance matters is usually obtained from either an insurance broker or a solicitor. Insurance companies usually act in their own interests, don’t they?

After owners left the building we discussed the matter briefly and it was suggested that perhaps our OC has been refused WC cover. However we have not been advised of any claims made on our WC policy.

Surely every SM has an obligation to notify owners of all insurance claims made. One reason is that any witnesses to an accident could then give evidence. Another reason is so that owners can authorise the SM to seek WC cover from another insurer if our existing one has refused us cover.

We feel this matter is urgent and your advice would be very much appreciated because our SM is not helpful in the slightest.