Does our owners corporation need liability insurance?

The Home Affairs Department explains that section 28 of the Building Management Ordinance requires all owners corporations to procure and maintain third-party risks insurance relating to common parts and corporation property. Each policy must provide at least HK$10,000,000 per event. [C1]

Ask the committee to produce the current policy and schedule, rather than relying on an old renewal request or a payment record. Compare the corporation’s identity, building and insured interests with the requirement described by the Department. Refer disputed legal interpretation to a Hong Kong lawyer. [C1]

The Department distinguishes owners’ insurance for individual units and personal property from management-body insurance for common parts and facilities. A flat owner’s certificate therefore does not by itself show that the corporation’s obligation has been addressed. [C1, C3]

Where a manager arranges insurance, ask the insurer or a licensed broker to identify exactly how the corporation is insured. Do not infer the insured party from the name of the person paying the premium. Request the policy wording that connects the corporation to the relevant common-parts liability. [C1, C3]

The Department describes building public liability insurance as addressing compensation and associated legal costs for third-party bodily injury or death resulting from negligent building management by the insured or its employees. Match that description against the actual insuring clause and exclusions. [C2]

Ask which common areas and corporation property the schedule identifies, and how the insurer treats the building’s circumstances. The public minimum does not establish that every loss, every person or every part of a mixed-use development is insured under your contract. [C1, C2]

No. The Department separately describes property insurance for loss or damage to common property from fire or other insured risks. Liability protection and compensation for damage to the corporation’s own property answer different questions. Read each relevant section separately. [C2]

Before renewal, ask the committee to review policy continuity, insured identity and the scope of the common-parts liability. Raise unclear terms with the insurer or a licensed broker. This guide does not decide a particular accident’s liability or whether the insurer must pay it. [C1, C2]

Does every owners corporation have this obligation?

The Department states that all owners corporations must procure and maintain the policy. [C1]

What minimum amount should we check?

At least HK$10,000,000 per event. [C1]

Is a flat owner’s policy enough evidence?

No. Unit insurance and management-body common-parts insurance are distinct. [C3]

Does the policy need to address the corporation?

Yes. Check its insured identity against the statutory obligation. [C1]

Are common facilities relevant?

Yes. The Department expressly distinguishes cover for common parts and facilities. [C3]

Does public liability mean every property loss is covered?

No. The Department describes property insurance separately. [C2]

Can this page decide an accident claim?

No. Review the actual policy and obtain appropriate legal and insurance advice. [C1, C2]

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We provide information and referrals to a licensed Hong Kong broker; regulated advice and arrangements belong with that broker. Mainland visitors must sign in Hong Kong. Do not send identity, tax or medical documents through the general enquiry form. [C9]

General information, not advice.