What is Owner Corporation Insurance?

Owner Corporation

Most owned property under owner corporation is a building or group of buildings that has been divided into sub-units which may be individual apartments, office, industrial, commercial or retail units.

The Owners Corporation Insurance is the policy that looks after these buildings owned by an organisation or group of people.

The insurance covers damage and consequential damage to the building itself and all fixtures within the units. The insurance does not cover normal wear and tear, although does cover legal liability on the common property.

What is covered?

Owner Corporation  Insurance covers  the owners with :

  • General liability
  • Management committee liability
  • Property damage
  • Crime
  • Voluntary workers compensation
  • Legal advancement costs

What should you know?

(Cap. 344B of the Laws of Hong Kong) require an owners’ corporation (OC) to purchase third party risks insurance to reduce the risk of large damages faced by owners in case of accidents and, at the same time, offer better protection for members of the public.

Third-party risks insurance provides compensation for financial loss in the case of the death of, or bodily injury to, a third party due to common parts and facilities: such as lifts, staircases or fire service installations of the building. If compensation is required, it is paid by the insurance company.

If you are the owner of a unit in a property that has an owners corporation, you are a “member” of that owner’s corporation. When a lot is sold, the new owner becomes a member. A tenant paying rent to an owner is not a member of the owner’s corporation and does not generally interact with the owner’s corporation.



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As a company grows and becomes more successful, it needs more managers to monitor its activities. Each department has its managers and directors responsible for overseeing duties and employees. These directors and managers are trusted to make decisions and take actions that benefit the company.  However, they can also be held liable if any board member, investor, or governing authority believes they have failed their duty. Fortunately, a policy called "directors and officers liability insurance" can cover such lawsuits. Despite this, many companies still do not believe that this insurance is important and think that their business may not [...]