Are lot owners required to have public liability insurance?

Insurance

This article discusses strata lot owner public liability insurance and clarifies that it is not mandatory but leaving it out carries risk.

Is there any obligation for lot owners to have Public Liability Insurance in place for their lot?

Is there any obligation for lot owners to have Public Liability Insurance in place for their lot? If a resident is injured on Common Property such as a Garden area and the lot owner has no insurance, can they be sued for damages? The use is granted by the Council of Owners, but where does the lot owner stand?

Is there any obligation for the Council of Owners to request evidence of cover from all lot owners? As far as I can see, this is not addressed in the Act.

If the owner chooses to not take out insurance it is at their own peril.

There is no specific obligation.

The strata corporations insurance covers personal injury & property damage legal claims made against them by other parties including in the above examples (subject to the terms and conditions of the policy).

If the owner chooses to not take out insurance it is at their own peril. I do not believe the Act gives the strata corporation the power to enforce a requirement for the lot owner or tenant to take out insurance.

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Published: 7 Apr 2026

Last Updated: 7 Jul 2026

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Answer by

Tyrone Shandiman

Strata Insurance Solutions

Tyrone Shandiman is a seasoned professional in the insurance industry having embarked on his journey in 2004 within the financial services sector. In 2011, he established Strata Insurance Solutions, transforming a garage startup into a reputable firm servicing over 900 clients with a dedicated focus on strata insurance. Tyrone's role extends beyond managing operations and tackling complex insurance matters; he also founded the Australian Consumers Insurance Lobby, championing consumer rights within the insurance industry. Notably, his efforts and expertise have been acknowledged with numerous industry awards. Adding to these accolades, Strata Insurance Solutions was recently named an Australian Top Brokerage by Insurance Business Australia Magazine, a testament to the firm's excellence and leadership in the field. Tyrone is a regular contributor to LookUpStrata.