Q&A Running a Business in Residential Strata & the Impact on Insurance

Q: Our body corporate has residential insurance to cover our 8 units. This includes public liability insurance. We have an owner/occupier who runs her Pilates business from her unit.  In speaking with the insurer, they advised that if a client of the business was injured on site we would not be covered unless the insurance was upgraded to commercial insurance.  To my knowledge, the owner setup her business without notifying the body corporate management group and has run it for some years from her unit. To move to commercial insurance will mean an increase in the insurance fee.  Can you advise if the business owner can be charged the difference between residential and commercial insurance costs or if the business can be stopped from running out of the unit putting the other owners at risk?     Read the Q&A…………….