What happens when the strata is being sued?

Q: Our strata council was sued in April because of a bylaw that was allegedly not enforced properly. They contacted a lawyer to defend the strata and in the end we lost and the strata ended up paying almost $45,000 in fees and costs. This part of the dispute seems normal but the owners want to know why the strata did not contact the insurance company and file a claim, which only has a $10,000 deductible for these types of actions? It seems unwise to have paid for an insurance policy that we did not take advantage of and then ended up paying for money the owners never authorized.     Read the Q&A…………….