Insurance Broker Tenders

Selecting appropriate insurance is one of the most important risk-management decisions for a body corporate or strata scheme.

Lee Lawyers can assist a body corporate or committee with the legal and practical aspects of an insurance broker tender process.

Depending upon the circumstances, this may include assisting with:

• preparing tender requirements;

• identifying the information that brokers should provide;

• establishing appropriate comparison criteria;

• reviewing broker proposals;

• identifying differences in proposed cover;

• considering policy terms, exclusions, limits and deductibles;

• identifying areas requiring clarification;

• documenting the tender process;

• assisting the committee to evaluate competing proposals; and

• providing legal input into the final selection process.

The purpose is not to replace the specialist advice of a licensed insurance broker.

Rather, legal input can help the body corporate understand the contractual and risk-management implications of the arrangements being considered and ensure that important issues are identified before a decision is made.

Insurance Experience That Adds Practical Value

Ross Lee brings an unusual combination of legal and insurance experience to body corporate insurance matters.

Before commencing his legal career, Ross worked in the general insurance industry as:

• a general insurance claims officer;

• a loss adjuster in Brisbane; and

• an account executive and underwriter in Cairns and Townsville.

This means Ross has practical experience across several stages of the insurance process.

As a claims officer, he was involved in the handling and assessment of insurance claims.

As a loss adjuster in Brisbane, he investigated and assessed losses and considered issues affecting liability and quantum.

As an account executive and underwriter in Cairns and Townsville, he worked with insurance risks and underwriting before claims arose.

That background provides a valuable perspective when assisting body corporates with insurance arrangements, claims and disputes.

Insurance Claims

Body corporate insurance claims can involve substantial property damage and complex questions about responsibility, policy coverage and the extent of the insured loss.

Lee Lawyers can assist with disputes or difficulties arising from claims involving matters such as:

• building damage;

• storm and water damage;

• fire;

• structural damage;

• common property;

• building defects;

• loss assessment;

• repair and reinstatement;

• business interruption or loss of use;

• policy interpretation;

• exclusions;

• deductibles and excesses;

• claims handling; and

• disputes with insurers.

Where appropriate, we can liaise with insurers, loss adjusters, building consultants, engineers and other relevant professionals.

Our objective is to help the body corporate understand its legal position and pursue an appropriate outcome.

Insurance Disputes

Insurance disputes can arise where an insurer:

• declines a claim;

• accepts only part of a claim;

• disputes the amount of the loss;

• relies upon a policy exclusion;

• disputes the cause of damage;

• disputes whether particular property is insured;

• delays resolution of a claim; or

• imposes conditions or requirements that are disputed.

These disputes can be particularly difficult for a body corporate because the underlying property may require urgent repair while the insurance position remains unresolved.

Early legal advice can help identify the relevant policy provisions, evidence and options for resolving the dispute.

Building Defects and Insurance

Body corporate properties can present particular challenges where building defects and insurance issues overlap.

For example, damage to common property may involve questions concerning:

• the cause of the damage;

• whether the damage is insured;

• whether a defect is covered or excluded;

• responsibility for rectification;

• the appropriate repair methodology;

• the relationship between the original defect and subsequent damage; and

• whether another party may be legally responsible.

These matters can require consideration of insurance policies, building contracts, expert evidence and property legislation.

Lee Lawyers can assist in identifying the relevant issues and coordinating the legal strategy.

Body Corporate Disputes

Disputes within strata schemes can arise between:

• the body corporate and an owner;

• owners and other owners;

• the body corporate and a contractor;

• the body corporate and a building manager;

• the body corporate and an insurer;

• the body corporate and a broker; or

• other parties involved in the management or maintenance of the property.

Issues may include:

• responsibility for repairs;

• common property;

• damage to lots or common property;

• maintenance obligations;

• building works;

• contractual disputes;

• insurance;

• levies and financial obligations;

• committee decisions;

• contractors;

• building defects; and

• other disputes concerning the operation or management of the scheme.

The appropriate dispute-resolution process depends upon the nature of the dispute and the legislation applying to the particular scheme.

Dispute Resolution

Not every body corporate dispute needs to proceed immediately to litigation.

Negotiation and mediation can often provide an effective way of resolving disputes while reducing cost, delay and disruption.

Lee Lawyers can assist with:

• assessing the dispute;

• advising on legal rights and obligations;

• negotiation;

• formal settlement proposals;

• mediation;

• preparation for dispute-resolution processes;

• settlement documentation; and

• litigation where resolution cannot be achieved.

The objective is to resolve the dispute wherever reasonably possible while protecting the body’s legal position.

Mediation

Mediation can be particularly valuable for body corporate and strata disputes because the parties often need to maintain an ongoing relationship after the dispute has been resolved.

This can include disputes between:

• owners;

• committees and owners;

• bodies corporate and contractors;

• bodies corporate and insurers; and

• other parties involved with the scheme.

Mediation allows the parties to explore practical solutions that may go beyond the precise orders that might ultimately be available through litigation.

Ross Lee – Advocate or Mediator

Ross Lee can participate in mediation in two distinct capacities.

As advocate:
Ross or another Lee Lawyers practitioner can represent and advocate for a body corporate or other client at mediation.

As mediator:
Ross can act as an independent mediator in appropriate civil and administrative disputes.

Ross was a sessional (casual) Member of the Queensland Civil and Administrative Tribunal (QCAT) for 10 years and a QCAT-trained mediator for civil and administrative disputes.

When acting as mediator, Ross does not represent either party and must maintain his independence and impartiality.

The appropriate role and any potential conflicts should be considered before an appointment is made.

Litigation

Some body corporate disputes cannot be resolved through negotiation or mediation.

Where litigation becomes necessary, Lee Lawyers can advise and represent clients concerning appropriate proceedings.

Depending upon the nature of the dispute, this may involve proceedings or applications concerning:

• insurance;

• contractual disputes;

• property and common-property issues;

• building defects;

• damage;

• professional negligence;

• contractors;

• property owners; or

• other civil disputes.

The appropriate forum and procedure will depend upon the particular circumstances and applicable legislation.

Our litigation approach is to identify the real issues in dispute, assess the evidence and pursue the matter proportionately to the importance of the dispute.