Question: As committee members, what are our potential personal liabilities if we know about major defects and don’t disclose this information to our insurer or take any action to repair it?
Answer: We highly recommend not ignoring these matters because you will be responsible for decisions made by the insurer with regard to their decision/s in how they respond to a claim (in part, full, or denial), potential cancellation of a policy coverage and/or risk of placement of future cover by either the current or future insurers for past non-disclosures.
This may be getting into an insurance question, but we are all aware of the duty of disclosure. If you are aware of major defects, such as concrete cancer, even if the owners corporation is unable to meet the full repair costs immediately, you could put some temporary measures in place to prevent further damage or risk, such as spalling, from occurring.
We recommend consulting a professional for advice on mitigating safety risks, even if it’s a short-term solution. Stage two of the repair might involve a broader scope of fixing the problem, but we highly recommend not ignoring this matter because you will be liable.
Bruce McKenzie Sedgwick E: bruce.mckenzie@au.sedgwick.com P: 1300 735 720