OHS and sectional title insurance

[Updated: 14 October 2025]

The topic of occupational health and safety (OHS) has once again become a focal point, especially since the publication of the OHS Act Construction Regulations, 2014 (gazetted in February 2014). These regulations brought renewed attention to safety obligations within community schemes, particularly concerning contractors and workers operating on common property.

Can a trustee be held responsible?

Yes. When reading the Construction Regulations, it is clear that trustees carry responsibility for the safety of workers on common property. While this duty has always existed in principle, the 2014 regulations made it more explicit and provided greater clarity.

Trustees, acting on behalf of the body corporate, are responsible for ensuring that the common property is managed and maintained in a way that does not expose workers, contractors, residents, or visitors to undue risk. This includes ensuring that proper safety measures are in place before and during maintenance or construction activities.

Can a managing agent be held responsible?

A managing agent’s responsibility depends largely on the scope of their management contract.

A managing agent may be appointed by the body corporate to control, manage and administer the common property on behalf of the body corporate. This delegation can include certain OHS-related duties, depending on what the trustees have assigned or agreed to in writing.

In practice, a managing agent who arranges or oversees contractors on site, or who fails to alert trustees to obvious risks, may share in the responsibility if something goes wrong. Therefore, both trustees and managing agents should clearly define and document their respective roles in managing OHS matters.

How should trustees approach OHS compliance?

Trustees are advised to adopt a proactive approach by commissioning a comprehensive risk and safety assessment of the common property, carried out by a qualified safety and loss control consultant. We as brokers, often recommend both a risk surveyor and OHS consultants.

Such an assessment should cover all foreseeable risks, including:

• Fire safety and placement of extinguishers
• Stairways, handrails, balustrades, and access control gates
• Swimming pool enclosures and compliance
• Structural integrity of walkways, walls, and balconies
• Electrical safety and lighting in common areas
• Housekeeping, signage, and emergency procedures

The consultant should provide a written Risk Assessment Report and a Safety Specification Document, advising on the appropriate safety measures and contractor compliance requirements.

How should managing agents handle OHS?

Managing agents should:

• Encourage trustees to prioritise OHS and engage qualified professionals for inspections and compliance.
• Ensure that contractors appointed for any work on common property are OHS-compliant, with the necessary safety files, insurance, and permits.
• Promote the use of well-known reputable contractors or service providers with proven experience in community schemes.
• Keep proper documentation on site and maintain a record of contractor compliance and inspections.
• A proactive managing agent not only helps protect the trustees and body corporate but also adds real value by reducing potential liability exposures.

Is there insurance protection for trustees and managing agents?

No insurance policy provides a “get-out-of-jail-free” card or pays for fines or penalties arising from OHS non-compliance. Such risks cannot be transferred.

However, civil liability arising from an injury or claim can often be dealt with via the body corporate’s liability cover.

It is important to note that most liability and indemnity policies require the insured to take reasonable precautions and to comply with applicable legislation, including the OHS Act and Construction Regulations.

Ultimately, insurance should be viewed as secondary protection. The primary goal is to prevent injury, loss, or damage through proper compliance and sound safety practices.

In summary

Trustees are responsible for ensuring that common property is safe. Managing agents may share responsibility, depending on their contractual role.

OHS compliance is not optional; it is a legal duty and a moral obligation to protect lives and property. Insurance may cover resultant civil claims, but prevention and compliance are the best forms of protection.