Question: We have public liability insurance for our private road, but can’t find any record that it was ever certified. Could that create an insurance or liability problem?
We have over 10 homes on large blocks along a 1 km sealed private road, installed some 30 years ago.
We have public liability insurance for the road, but we can’t find any information as to whether the road has been certified. Council has no records or information.
If the road has not been certified, could this cause us any insurance or liability issues?
Answer: What matters for insurance and liability is whether the road is actually safe and compliant now, not whether certification records exist.
We are not able to comment on the certification requirements for the road, including whether it was required to be certified when constructed or whether it currently meets the relevant Council or regulatory requirements. You may need to obtain advice from Council, an engineer or another appropriately qualified professional on that aspect.
From an insurance perspective, however, there are a couple of potential considerations.
Some insurance policies contain exclusions relating to the cost of repairing, replacing or rectifying illegal or non-compliant installations. I am not suggesting that the road is illegal or non-compliant, particularly given it was constructed approximately 30 years ago. However, if it were later established that the road was not lawfully constructed or did not meet applicable requirements, this could affect a claim involving damage to, or rectification of, the road itself, depending on the circumstances and policy wording.
There is also a potential public liability consideration. If someone were injured or suffered property damage involving the road, the circumstances of the incident would need to be considered.
If an issue with the road’s construction, certification or condition contributed to the incident, this could potentially become relevant when determining whether the owners corporation was negligent or legally liable.
Liability claims are very fact-specific. Lawyers and insurers will generally consider what caused the incident, the condition of the road, what the owners corporation knew or reasonably should have known, whether reasonable maintenance and risk management measures were in place, and whether any particular defect or non-compliance contributed to the loss.
The absence of certification records does not, by itself, necessarily mean that there is an insurance or liability issue. The more important question is whether the road is actually compliant and safe, and whether any known defects or hazards require attention.
If the owners corporation is concerned, obtaining advice from an appropriately qualified engineer regarding the road’s current condition and compliance would provide a much clearer basis for assessing any potential insurance or liability implications.
This post appears in the October 2026 edition of The NSW Strata Magazine.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
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