Health Insurance Online :: News
SHARE

Share this news item!

Asbestos Scare Leaves Hospitality Business Uninsured

Asbestos Scare Leaves Hospitality Business Uninsured

Asbestos Scare Leaves Hospitality Business Uninsured?w=400
The discovery of asbestos-contaminated mulch in a Sydney park led to the cancellation of a festival, resulting in significant financial losses for a hospitality business.
Despite these setbacks, the company's claim for coverage under its business interruption (BI) policy was rejected.

The business was poised to provide bar services for the event scheduled for February 18 last year but was halted when authorities closed the park due to the health risk. The business argued that its BI policy should cover the losses through an additional benefit clause extending damage cover to customers and suppliers or via a prevention of access provision.

However, Suncorp, the insurer, declined the claim. The insurer highlighted that the policy contained an exclusion for contamination, which the claimant sought to contest by arguing that the contamination was the result of malicious actions. Despite this, Suncorp stated the claimant did not establish that the alleged damage happened during the policy period or “at the premises” of a customer or supplier.

The insurer further clarified that access to the claimant's premises was not directly prevented or hindered, and the park's closure was a precautionary measure due to community health concerns. Consequently, the prevention of access clause was not applicable in this scenario.

The Australian Financial Complaints Authority (AFCA) reviewed the dispute and recognised that asbestos in the mulch may constitute damage. Nonetheless, they pointed out that the contamination could have occurred prior to the insurance period. The claimant failed to produce detailed evidence regarding the connections between their business, the park, and the event organisers. AFCA could not ascertain if the contamination affected premises related to the claimant's business dealings.

AFCA found no malicious intent behind the contamination, noting the NSW Environment Protection Authority conducted investigations, yet did not attribute the incident to deliberate actions. Without concrete evidence of malice, the policy’s contamination exclusion applied.

Ultimately, AFCA decided the prevention of access cover was not triggered since the claimant’s access to their own premises was unaffected directly by the park’s closure. Although the park's shutdown did occur within a stipulated 50km radius of the insured premises, the insurer relied on policy terms to deny the claim. This decision underscores the complexities businesses face in navigating coverage for unforeseen interruptions.

Published:Friday, 4th Jul 2025
Source: Paige Estritori

Share this news item:

Insurance News

AFCA Sides with Policyholder in Storm Damage Dispute AFCA Sides with Policyholder in Storm Damage Dispute
18 Jul 2025: Paige Estritori

A recent ruling by the Australian Financial Complaints Authority (AFCA) has favoured a policyholder in a dispute with insurer Auto & General over storm damage. The case involved a collapsed ceiling, initially attributed to a storm by the insurer before an about-face led them to deny the claim. The AFCA decision marks a significant instance where consumer protection mechanisms have countered an insurer's attempt to deny coverage. - read more
Transforming Home Insurance: The Rise of the Home Energy Revolution Transforming Home Insurance: The Rise of the Home Energy Revolution
17 Jul 2025: Paige Estritori

The landscape of home insurance policies in Australia stands on the brink of transformation as an increasing number of homes, apartment complexes, and small businesses are projected to integrate solar panels and battery systems by 2050. According to a report from the actuarial consultancy Finity, these homes will evolve into independent power stations, generating and storing their own electricity, marking a pivotal shift in home energy management. - read more
Life Insurers Reevaluate Amid Rising Mental Health Claims Life Insurers Reevaluate Amid Rising Mental Health Claims
16 Jul 2025: Paige Estritori

In a growing industry concern, the Council of Australian Life Insurers has highlighted an alarming increase in mental health-related claims, which are now the leading cause of total and permanent disability (TPD) claims. The rise has driven insurers to reconsider their current practices and strategies to address this trend. - read more
QBE Highlights the Importance of Adequate Landlord Insurance QBE Highlights the Importance of Adequate Landlord Insurance
15 Jul 2025: Paige Estritori

Landlords in Australia have been advised by QBE Insurance Group to reassess their insurance coverage, following survey findings that indicate many could encounter financial hardships if their rental operations are interrupted. According to QBE's data, 38% of landlords might face financial challenges should their properties become uninhabitable or rental payments cease for a duration of two to six weeks. - read more
Court Denies E-Scooter Negligence Allegation Against City Council Court Denies E-Scooter Negligence Allegation Against City Council
14 Jul 2025: Paige Estritori

An Australian court recently ruled in favour of the City of Joondalup, rejecting a negligence claim lodged by an injured e-scooter rider. The Western Australia District Court found the city not liable for an accident involving insurance broker Kirstin Leibbrandt, who collided with a fence post while riding an e-scooter in the Perth suburb of Hillarys. - read more


Health Insurance Articles

Smart Strategies to Lower Your Health Insurance Premiums Smart Strategies to Lower Your Health Insurance Premiums
In today's rapidly changing health insurance landscape in Australia, keeping track of costs and coverage can be daunting. Many Australians find themselves grappling with high premiums that seem to increase year after year. - read more
The Role of Health Insurance in Supporting Preventive Care The Role of Health Insurance in Supporting Preventive Care
Preventive healthcare refers to measures taken to prevent diseases, rather than treating them after they occur. This includes actions like regular health screenings, vaccinations, and adopting healthy lifestyle practices. - read more
The Ultimate Guide to Comparing Health Insurance Plans in Australia The Ultimate Guide to Comparing Health Insurance Plans in Australia
Australia is renowned for its iconic landmarks, diverse ecosystems, and robust healthcare system. While the public healthcare system, Medicare, provides essential health services, it might not cover everything. The allure of private health coverage lies in its promise of broader options, reduced wait times, and coverage for services not included in Medicare, like dental and optical care. - read more
Top 10 Tips to Find Affordable Health Insurance in Australia Top 10 Tips to Find Affordable Health Insurance in Australia
Finding affordable health insurance can be a daunting task, particularly in a landscape as diverse as Australia’s. With a myriad of options available, it's crucial to understand the financial support mechanisms in place that can ease the burden of healthcare costs. One such mechanism is the health fund rebate, a key feature of the Australian health insurance system designed to make healthcare more accessible. - read more
Health Fund Rebates 101: What Every Australian Needs to Know Health Fund Rebates 101: What Every Australian Needs to Know
Exploring the realm of health insurance can be like navigating a labyrinth, replete with complex terms and varying policies. Among these, health fund rebates emerge as a crucial element, particularly for young Australians embarking on their journey of health coverage. Fund rebates can significantly lighten the financial burden, transforming the quest for health insurance from daunting to empowering. - read more
Demystifying Individual Coverage: Your Guide to Personal Health Insurance in Australia Demystifying Individual Coverage: Your Guide to Personal Health Insurance in Australia
In the realm of securing one’s health and wellbeing, navigating the Australian health insurance landscape can be as critical as the care received. It stands as a complex tapestry, woven with policies, premiums, and government incentives, affecting individuals and families nationwide. - read more
The Role of Health Insurance in Supporting Preventive Care The Role of Health Insurance in Supporting Preventive Care
Preventive healthcare refers to measures taken to prevent diseases, rather than treating them after they occur. This includes actions like regular health screenings, vaccinations, and adopting healthy lifestyle practices. - read more
The Importance of Comparing Health Insurance Extras for Maximum Savings The Importance of Comparing Health Insurance Extras for Maximum Savings
Health insurance is more than just a precautionary measure; it's a vital component in managing both your health and financial well-being. In Australia, where healthcare costs can quickly escalate, health insurance extras serve as a buffer, ensuring that services like dental, optical, and physiotherapy remain within reach. These extras can significantly reduce the out-of-pocket expenses you might otherwise encounter for non-hospital treatments. - read more
Insider Secrets to Finding Cost-Efficient Health Insurance Insider Secrets to Finding Cost-Efficient Health Insurance
Health insurance in Australia is a crucial aspect of ensuring you and your family receive the medical care needed without facing exorbitant costs. The healthcare system, consisting of both public and private sectors, offers various options to suit different needs and budgets. While the public sector (Medicare) provides essential services, private health insurance offers additional benefits such as faster access to services, choice of doctor, and coverage for services not included in Medicare. - read more
Is Private Health Insurance Worth It? Exploring the Benefits Is Private Health Insurance Worth It? Exploring the Benefits
In Australia, health insurance plays a significant role in ensuring individuals can access quality medical care without incurring prohibitive costs. - read more


Your free Heatlth insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Aggregate Limit:
The maximum amount an insurer will pay for all covered losses during a policy period.