Can a Sole Trader Project Manager Obtain PI Insurance?

Sole traders can seek cover, subject to insurer assessment. Explain your services, experience, contracts, income and previous work.

Does Construction Project Management Need Different Cover From Business Consulting?

It can. Construction services may fall outside a non-construction consultancy policy. Describe your actual activities and check the wording and exclusions.

Can PI Insurance Cover Alleged Budgeting or Scheduling Errors?

Potentially, where the allegation concerns an insured professional service and the claim meets the policy terms. An unfavourable project outcome alone does not guarantee cover.

Is Project Manager PI Insurance the Same as Management Liability?

No. PI concerns professional-services liability. Management liability addresses specified exposures associated with managing the business, depending on the policy.

Does My Client’s Insurance Cover Me?

Do not assume so. Check whether you and your business are insured, for which services, and on what terms.

Can I Obtain a Certificate of Currency for a Tender?

Once cover is arranged, request the certificate for the correct insured entity. Compare it with the tender requirements and review the underlying policy where necessary.

Can I Change Insurers While a Project Is Underway?

Potentially. Review continuity, earlier work, exclusions and any known circumstances before replacing cover. Avoid assuming that the new policy will respond identically.

Professional Indemnity Insurance for Strata Managers

Q: Does a New Policy Cover a Dispute I Already Know About?

Do not assume it does. Disclose relevant information and promptly consider notification under any existing policy.

Strata manager PI insurance for strata management businesses, owners corporation managers and body corporate management consultancies in Sydney and across Australia.

Strata managers coordinate decisions affecting shared property, substantial budgets and the people who live or work in a scheme. When an owners corporation alleges that an error in your professional services caused loss, your business may need to defend its advice, records and actions.

Speak with Clarke Lyons Insurance about professional indemnity insurance for strata managers that reflects your services, portfolio and management agreements.

Whether you manage residential apartments, commercial strata schemes or mixed-use developments, the assessment should start with what your business is appointed and authorised to do.

Request a Strata Manager PI Insurance Quote

What Is Professional Indemnity Insurance for Strata Managers?

Professional indemnity insurance for strata managers is designed to respond to covered claims alleging professional negligence, errors, omissions or breaches of professional duty in delivering insured strata management services.

Depending on the policy, cover may include legal defence costs and compensation payable for covered claims.

A disagreement with a committee, a maintenance problem or an unsuccessful insurance claim does not automatically establish negligence. The duties accepted, alleged failure, resulting loss and policy terms all matter.

Is Strata Manager PI Insurance the Same as Strata Building Insurance?

No. Strata manager PI insurance concerns the manager’s professional liability. Strata building insurance concerns the owners corporation’s or body corporate’s insured property and other specified scheme risks.

A building policy may include sections such as property damage, public liability and office bearers liability. Those sections should not be assumed to replace the managing agent’s own professional indemnity insurance.

For example, storm damage may raise a question under the scheme’s building policy. A separate allegation that the managing agent negligently failed to follow renewal instructions could raise a professional liability question.

Identify who is insured and which activity or loss each policy is intended to address.

Who Should Consider Strata Management Professional Indemnity Insurance?

Discuss PI insurance if your business provides professional strata, owners corporation or body corporate management services.

Your assessment should identify whether you operate as:

An independent strata managing agent.
A strata management company.
An owners corporation management business.
A body corporate management consultancy.
A community scheme manager.
A property services business providing strata management alongside other activities.

Terminology and legal responsibilities vary across Australia. The labels “strata manager”, “owners corporation manager” and “body corporate manager” can describe related services, but do not imply identical laws or duties in every jurisdiction.

What Strata Management Services Should Be Declared?

Give your broker a clear description of your services and delegated authority.

Activities to discuss include:

Meeting administration, notices and minutes.
Levy administration and financial reporting.
Budget preparation and expenditure monitoring.
Record keeping and information supplied to owners.
Coordination of maintenance and repair instructions.
Contractor engagement within delegated authority.
Insurance administration within the scope of your authorisation.
Support for committees and communication with owners.

Explain whether you also undertake building management, facilities management, letting, real estate services, project management or specialist reporting.

These activities should not be assumed to fall within a generic strata management description.

PI Insurance for Residential Strata Managers

Residential portfolios can range from small townhouse schemes to large apartment developments.

For your insurance assessment, describe the number and type of schemes managed, the services provided and the involvement of employees or subcontractors.

Identify unusual responsibilities, such as coordinating major remedial works or administering a scheme with significant ongoing disputes. Explain how decisions are authorised and how matters outside your expertise are referred to appropriate professionals.

A manager coordinating a repair is not necessarily accepting responsibility for designing, certifying or carrying out that repair. Your appointments and insurance description should reflect the actual role.

Insurance for Commercial and Mixed-Use Strata Managers

Commercial and mixed-use schemes can involve different occupancies, shared services and operational requirements.

Tell your broker about the nature of your portfolio and whether it includes retail premises, offices, industrial units or developments combining residential and commercial lots.

Describe your responsibilities for expenditure, contractor coordination and communications concerning shared facilities.

The purpose is to assess the professional services you provide, not to assume that every interruption to a business in the building becomes your liability.

What Can Strata Manager PI Insurance Cover?

Depending on the wording, PI insurance may respond to covered allegations concerning:

Negligent professional advice or administration.
Errors or omissions in records, reports or communications.
Failure to perform an agreed management function.
Alleged breaches of professional duty.
Other civil liabilities included within the policy.

Covered defence costs and damages or settlements may also be included. Check the excess, sublimits, insurer consent requirements and whether legal costs reduce the indemnity limit.

Ask separately about benefits such as loss of documents, defamation or investigation expenses. The existence of an extension in one policy does not mean it appears in every policy.

Hypothetical Strata Manager Claim Examples

The following examples illustrate potential allegations, not Clarke Lyons claims or guarantees of cover.

Insurance Renewal Instructions

An owners corporation alleges that its manager failed to pass on agreed renewal instructions, leaving a gap in the intended insurance arrangements.

The manager’s appointment, communications, insurance authorisation and the actions of other parties would need examination.

Maintenance Escalation

A committee alleges that a manager did not escalate a reported issue within the agreed scope of services, contributing to additional loss.

The records would need to establish what was reported, the authority available and the instructions given. The underlying defect is not automatically covered by the manager’s PI policy.

Levy Administration

An owners corporation alleges that an administrative error caused incorrect levy notices and avoidable recovery expenses.

Whether liability arises and insurance responds depends on the actual error, consequences and policy terms.

Contractor Instructions

A committee alleges that the manager authorised work beyond its delegated authority, resulting in disputed expenditure.

The management agreement, resolutions and instructions would be central to assessing responsibility.

Is PI Insurance Compulsory for Strata Managers?

Requirements depend on the jurisdiction and the services you provide. Assess your actual licence or registration requirements rather than applying a single national assumption.

Strata Manager Professional Indemnity Insurance in NSW

NSW Government guidance requires relevant property professionals to be insured under a professional indemnity policy that complies with the regulations. Strata managing agents should check the requirements relevant to their licence and business arrangements.

An employee’s position and a licensed management company’s position should be assessed in context. Do not assume that another entity’s policy automatically provides the required protection.

Owners Corporation Manager PI Insurance in Victoria

Consumer Affairs Victoria states that owners corporation managers must maintain professional indemnity insurance with a minimum cover of $2 million.

Its guidance also says the certificate of currency should state Owners Corporation Management, Body Corporate Management or Strata Management.

The minimum amount is a compliance requirement, not an individual assessment of the appropriate limit for every portfolio.

Other States and Territories

Body corporate and strata management arrangements differ across jurisdictions. Confirm applicable legislation, contracts and professional requirements where you operate.

If your business manages schemes interstate, tell your broker rather than assuming one state’s requirements describe the entire practice.

How Much Does Strata Manager PI Insurance Cost?

There is no single professional indemnity insurance cost for strata managers.

A quote depends on the business and the cover sought. Prepare information about:

Annual professional fee income.
Number of schemes and lots managed.
Residential, commercial and mixed-use portfolio composition.
Services and delegated responsibilities.
Staff, contractors and relevant experience.
Previous claims and known circumstances.
Requested indemnity limit and excess.
Additional business activities.

For a new practice, provide a clearly identified forecast and explain the principals’ experience.

When comparing strata manager insurance quotes, assess the premium alongside the wording, insured services, exclusions, excess and continuity for previous work.

Discuss Your Strata Manager PI Insurance Quote With Clarke Lyons

How Much Professional Indemnity Cover Does a Strata Manager Need?

Start with the applicable minimum and contractual obligations, then consider the practice’s potential exposure.

Ask whether several claims could arise from the same process or administrative error across multiple schemes. Discuss how the wording groups related claims and how the annual aggregate operates.

Also review whether defence costs sit within the limit, whether particular benefits have lower sublimits and whether the business can meet the excess.

A portfolio’s total building value is not automatically the right PI limit. The question is the potential liability arising from the manager’s professional services.

Insurance Administration, Commissions and Conflicts of Interest

If your business assists with insurance, describe exactly what it does and the authority under which it acts.

Strata management registration should not be assumed to authorise every financial service. Confirm the licensing or representative arrangements applicable to insurance-related activities and how professional liability is allocated.

NSW guidance imposes disclosure obligations concerning commissions, supplier relationships and insurance quotations. Insurance quotes supplied to owners corporations must include specified itemised information.

Ask how your PI policy treats the activities you actually undertake. Do not assume it covers unauthorised advice, repayment of commissions, fines or every allegation concerning a conflict.

Strata Manager PI, Office Bearers Liability and Crime Cover

These covers address different exposures.

Professional indemnity concerns covered claims arising from the manager’s professional services.

Office bearers liability generally concerns specified liabilities of insured committee members or office bearers under the relevant policy. A paid managing agent should not assume it receives the same protection.

Crime or fidelity cover may address defined dishonest acts or losses of money, depending on the wording. Cyber and social engineering incidents may require different consideration.

Ask specifically about client funds, payment fraud, employee dishonesty and third-party scams. A PI policy should not be treated as an automatic guarantee against every loss involving a trust or client account.

Claims-Made Cover, Retroactive Dates and Run-Off Insurance

PI policies commonly operate on a claims-made basis. The timing of the claim and notification matters, subject to the policy and applicable law.

Previous Work

Check the retroactive date and how earlier services are treated when changing insurers. Raise known complaints or circumstances rather than assuming the next policy will cover them.

Selling or Acquiring a Strata Portfolio

Explain whether a transaction involves client management agreements, business assets or a company acquisition.

Ask how the proposed arrangements treat historical work, predecessor businesses and responsibility for services performed before the transfer.

Run-Off Insurance

If you retire, sell or close the management business, discuss insurance for future claims arising from past services.

Ending a management appointment does not necessarily end potential professional exposure.

What Should You Do If an Owners Corporation Makes a Complaint?

A complaint may or may not amount to an insured claim, but it can still require notification.

Preserve the management agreement, relevant resolutions, correspondence, financial records and instructions. Contact your broker or insurer promptly to discuss the policy’s requirements.

Check consent provisions before admitting liability, agreeing compensation or incurring defence costs. Continue to meet applicable professional and legal obligations while the matter is assessed.

Strata Manager Insurance in Sydney and Across Australia

Clarke Lyons Insurance is based in Bondi Junction, Sydney. Speak with the team about professional indemnity insurance for your strata management business and any interstate operations.

Whether you manage schemes in Sydney, Newcastle, Wollongong, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart or Darwin, explain your portfolio and the services you provide.

Use the terminology relevant to your work, including strata management, owners corporation management or body corporate management, so the insurance assessment reflects the business accurately.

What to Prepare for a Strata Manager PI Insurance Quote

Have your business details, annual fee income, portfolio breakdown and current policy schedule ready.

Also provide:

Management agreements and delegated responsibilities.
Relevant licence or registration details.
Staff and contractor arrangements.
Claims history and potential claim circumstances.
Additional professional services.
Planned acquisitions or business changes.
Required cover limits and renewal dates.

If you have insurance-related representative arrangements, explain these and supply relevant documents when requested.

Frequently Asked Questions

Is Strata Manager PI Insurance Different From Building Insurance?

Yes. PI concerns the manager’s covered professional liability. Building insurance concerns the scheme’s insured property and other specified risks. Neither should be assumed to replace the other.

What Is the Victorian Minimum for Owners Corporation Managers?

Consumer Affairs Victoria specifies a minimum of $2 million in professional indemnity insurance. Consider whether a higher limit is appropriate for the particular business.

Can a Small Strata Management Business Obtain Cover?

Small businesses and sole practitioners can seek cover, subject to insurer assessment. Provide experience, services, portfolio and income information.

Does PI Cover Every Maintenance or Building Defect Claim?

No. A defect or maintenance issue alone does not establish professional negligence. Any claim against the manager must be assessed against the manager’s duties and policy terms.

Are Employees and Contractors Automatically Covered?

Check the insured-person definition and subcontractor provisions. Cover for the business’s liability arising from another person’s work is different from insuring that person directly.

Does Office Bearers Liability Cover the Managing Agent?

Do not assume it does. Review the insured-person definition and exclusions. Committee cover is not a substitute for assessing the professional manager’s PI requirements.

Will PI Insurance Cover Stolen Client Money?

Not automatically. Review crime, fidelity, cyber and PI provisions separately. The identity of the person responsible, type of loss and policy wording matter.

Can I Obtain a Certificate of Currency?

Once cover is arranged, request a certificate showing the correct insured entity, insurance period and relevant business description. It is evidence of insurance, not the complete policy.

Will a New Policy Cover a Dispute Already Underway?

Do not assume so. Disclose relevant information and promptly consider notification under any existing policy. Known claims or circumstances may be excluded.

Request a Strata Manager Professional Indemnity Insurance Quote

Tell Clarke Lyons Insurance about the schemes you manage, the responsibilities you accept and your current insurance arrangements.

Discuss a new policy, renewal or review of existing owners corporation and body corporate management PI cover. Include your services breakdown, portfolio profile and any time-sensitive requirements.

Request a Strata Manager PI Insurance Quote

Speak With Clarke Lyons Insurance

General information only. Insurance is subject to insurer acceptance and policy terms, conditions, limits and exclusions. Consider the policy wording and any applicable PDS when assessing suitability.