Question: A trip hazard on our common property has been reported to the committee repeatedly, but remains unaddressed. What are the insurance and liability implications?
A resident has repeatedly requested the committee repair a known trip hazard that hasn’t been fixed for years. What are the insurance implications around known hazards the committee will not address?
Answer: An owners corporation that ignores a known trip hazard faces real liability and insurance risks. Failure to act could strengthen a negligence claim and impact the insurer’s position if an injury occurs.
If the owners corporation is aware of a trip hazard on common property and does not take reasonable steps to repair or make the area safe, there are potential liability and insurance implications.
Under section 106 of the Strata Schemes Management Act 2015 (the Act), the owners corporation has a duty to properly maintain and keep the common property in a state of good and serviceable repair. Where a hazard has been reported multiple times and remains unaddressed over an extended period, this can increase the scheme’s risk exposure.
Should an injury occur as a result of the known hazard, there is a risk of a public liability insurance claim against the owners corporation. In those circumstances, insurers may closely examine whether the owners corporation was aware of the issue and whether reasonable action was taken to mitigate the risk. Evidence that the hazard was known but not addressed could potentially impact the insurer’s position and may also strengthen a negligence claim against the owners corporation.
For that reason, it is important for known safety hazards to be assessed and rectified within a reasonable timeframe to reduce both safety risks to residents and potential liability exposure for the scheme.
This post appears in the July 2026 edition of The NSW Strata Magazine.
Mark Louis Vital Strata Management E: mark@vitalstrata.com.au P: 02 9008 1112
