This article discusses South Australian strata fidelity insurance.
Question: Under what circumstances is a Strata Corporation in South Australia required to be covered by fidelity guarantee insurance?
Answer: There is no specific requirement to take cover out under strata legislation in any state or territory in Australia.
Fidelity guarantee insurance covers embezzlement, theft misappropriation, conversion or fraud relating to the body corporate funds and assets such as your sinking and administration fund.
There is no specific requirement to take cover out under strata legislation in any state or territory in Australia, however some insurers will offer the cover automatically with no provision to opt out of the cover.
If you are lodging a claim for fidelity cover, most policies will require that you lodge the claim within 12 months of the policy expiry and some policies in the market will provide cover for auditor’s fees.
This post appears in Strata News #622.
Tyson D’Sylva Ace Body Corporate Management E: tyson.d@acebodycorp.com.au P: 08 8342 1544