What is public liability insurance in a body corporate context?

Public liability insurance covers the body corporate against claims for personal injury or property damage occurring on common property. For example, if a visitor slips on a wet common area floor and suffers injury, the body corporate's public liability insurance covers legal defence costs and any compensation awarded. The BCCM Act requires the body corporate to hold public liability insurance of at least $10 million. Important limitations: - It covers common property only — not incidents within individual lots - It covers the body corporate as an entity — not individual lot owners personally - Lot owners should hold their own public liability cover for incidents within their private areas Public liability claims are processed through the body corporate's insurer and managed by the committee or body corporate manager. This article is general information only and not legal advice.