QLD: Uninsured gardener — is he covered under body corporate insurance?

Question: The gardener handyman does not carry any insurance. Is he covered under the Body Corporate insurance?

Answer: We recommend the body corporate engage contractors who carry appropriate insurance.

The strata policy extends to cover the body corporate for legal liability claims made for personal injury and property damage.

While this can extend to cover liability the body corporate are drawn into as a result of the gardener’s action, it does not cover claims or legal actions made against the gardener.

In this instance, the gardener would need to carry public liability insurance.

While there is nothing specifically requiring the gardener to have liability insurance in Body Corporate Management Act, the Body Corporate should consider:

1. If someone was seriously injured as a result of the gardener and was not able to pursue their insurance they could be left in a problematic circumstance without the proper ability to recover financial losses from the gardener;


2. Solicitors for an injured party will more actively pursue defendants who can pay a claim (i.e. insured defendants) vs those who cannot. If there was an injury where the body corporate & gardener were drawn into the claim and the gardener was not insured, a solicitor may pursue the body corporate more actively having an adverse impact on the body corporate claims history.

For the reasons stated above, we recommend the body corporate engage contractors who carry appropriate insurance.

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.