Public Liability Insurance (also known as "Third Party Risk Insurance")

This insurance provides indemnity for compensation and associated legal costs against the insured, as a result of bodily injury to or the death of a third party caused by the insured's (and his employees') negligence in managing the building.

The statutory requirement concerning the mandatory third party risks insurance will take effect on 1 January 2011. However, for their own interest, owners and owners' corporations (OCs) are advised to procure such insurance so as to avoid individual accountability for colossal amount of compensation arising from negligence in managing their building.

Employees' Compensation Insurance (also known as "Workmen's Compensation Insurance")

If staff are involved in building management work, their employer (i.e.OC, mutual aid committee or property manager) is required under the Employees' Compensation Ordinance (Cap.282) to take out such an insurance policy to provide compensation for those injured or killed out of and in the course of their employment.

Property-All-Risks Insurance (also known as "Property Insurance")

When there is any loss or damage to the common properties of the building due to fire or other risks covered by the terms of the policy, the insured can seek the insurance company for indemnity. Such risks may include storm, flood, malicious act, etc.