Call to help uncovered businesses
GOVERNMENTS are being urged to help Townsville small business owners whose insurance policies do not cover them for losses from flood.
Townsville businessman Laurence Lancini has written to Premier Annastacia Palaszczuk, urging the Government to step in and help small business owners receive fair compensation for their loss by calling on insurers to handle all claims in a generous and fair way.
He will also write to the Federal Government asking that legislation is passed so that small business owners receive similar protections to homeowners.
The former Labor government introduced new laws in 2012 after recommendations from the Natural Disaster Insurance Review that all home insurance, home contents and home unit insurance policies include flood cover.
The Insurance Council of Australia has said it is concerned that a “significant number” of Townsville commercial policyholders may have chosen not to buy flood cover.
In the letter, Mr Lancini says he feels compelled to ask for help for “mum and dad operators” after meeting with distraught tenants of Fairfield Central Shopping Centre.
“Some of these tenants have lost not only their family homes but their livelihoods, and have now been told by their insurance companies that their policies will not or may not provide cover for the devastating impact of this
event on their businesses,” Mr Lancini said.
The centre’s Brumby’s Bakery operators Justin and Lyronne Bamford have told the Bulletin they had taken out what they thought was the best business insurance from Elders, only to be told by an insurance assessor the policy did not include cover for flood.
Mr Lancini said the insurance industry’s position was “totally unreasonable”.
“You can say these people need to understand their policies. These are mum and dad operators. The people that sell these policies, they need to be accountable,” Mr Lancini said.
Elders was asked about the Bamfords’ position that they were never told they were not
covered for flood but a spokesman said they could not comment on a customer’s case.
An insurance council spokesman said commercial flood cover had been available for Townsville businesses since 2007.
“At present, businesses can buy insurance that covers flood; products that allow the business to buy a flood extension to a policy; or a policy that stipulates that flood is not covered,” the spokesman said.
“Flood cover is risk-rated, so properties with the highest flood exposure would typically have higher premiums. Property owners who choose not to have flood cover can still buy policies that cover them for other risks.”