Liability Insurance :: 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

Asbestos Scare Leaves Hospitality Business Uninsured Asbestos Scare Leaves Hospitality Business Uninsured
04 Jul 2025: Paige Estritori

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. - read more
Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims
03 Jul 2025: Paige Estritori

In a groundbreaking decision by the NSW Personal Injury Commission, an insurer has been directed to cover the costs of dog walking services for a car crash victim. The commission ruled that these services classify as domestic assistance under the state’s Motor Accident Injuries Act. This case could pave the way for broader interpretations of 'attendant care services' for claimants. - read more
Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers
03 Jul 2025: Paige Estritori

Extreme weather events in Australia have resulted in significant financial impacts for insurers, tallying $1.83 billion in losses during the first half of the year. This comes as insurance companies gear up for further claims linked to ongoing severe weather in New South Wales. - read more
ClearView Names New Underwriting Head Amidst Strategic Changes ClearView Names New Underwriting Head Amidst Strategic Changes
30 Jun 2025: Paige Estritori

ASX-listed life insurer ClearView has announced the appointment of Peter Tilocca as Head of Underwriting, coinciding with key updates to its underwriting standards and definitions. Tilocca's extensive two-decade career in Australian underwriting includes leadership roles at Zurich, Noble Oak, One Path Life, and RGA Australia. His new role with ClearView commenced on 30 June. - read more


Business Insurance Articles

The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs
In the fast-paced world of entrepreneurship, the only constant is change, and with change comes the inherent realm of the unknown – risk. Australian entrepreneurs, much like their international counterparts, operate in dynamic environments where unpredictability is a staple. However, the unique economic, legal, and environmental aspects of Australia demand a more localized understanding of these risks. Acknowledging this unpredictability is the first step towards mitigating potential threats to one's business venture. - read more
Understanding Product Liability Insurance in Australia: A Business Owner's Guide Understanding Product Liability Insurance in Australia: A Business Owner's Guide
As a business owner in Australia, navigating the complexities of protecting your company is crucial, with product liability insurance being an essential aspect to consider. This type of insurance is designed to shield businesses from financial losses that may arise if a product they manufacture, supply, or sell causes harm to a consumer or damages property. - read more
Liability Risks: What Small Businesses in Australia Should Know Liability Risks: What Small Businesses in Australia Should Know
Welcome to our comprehensive guide on liability risks for small businesses in Australia. The world of business is fraught with challenges, and one often overlooked aspect is the array of potential liabilities that can stifle growth or even lead to catastrophic financial loss. It's crucial for small business owners to grasp the critical role that insurance plays in the protection and longevity of their ventures. - read more
Freelancer or Employee? Understanding the Difference and the Liability Implications Freelancer or Employee? Understanding the Difference and the Liability Implications
The contemporary business landscape in Australia is witnessing a significant shift towards the gig economy, with a growing number of professionals opting for the flexibility and autonomy that freelancing offers. This trend has not only revolutionized the way work is performed but has also introduced new dynamics in the legal distinctions between freelancers and traditional employees. - read more
The Importance of Documentation in Public Liability Claims The Importance of Documentation in Public Liability Claims
Public liability insurance is an essential part of any business's risk management strategy, especially for those operating in Australia. It's designed to protect businesses when they're found legally responsible for injury or damage to third parties due to their operations. But what happens when you need to make a claim? That's where understanding the claims process becomes vital. - read more
Public Liability Insurance Claims: What to Expect and How to Prepare Public Liability Insurance Claims: What to Expect and How to Prepare
When it comes to navigating the complex waters of insurance, understanding public liability insurance claims is crucial for businesses and individuals alike. Public liability insurance serves as a safeguard, protecting against the financial repercussions that arise from accidents or injuries that occur on your premises or through your operations. In this introductory section, we will delve into the essence of public liability insurance and underline its significance. - read more
Understanding Product Liability Insurance in Australia: A Business Owner's Guide Understanding Product Liability Insurance in Australia: A Business Owner's Guide
As a business owner in Australia, navigating the complexities of protecting your company is crucial, with product liability insurance being an essential aspect to consider. This type of insurance is designed to shield businesses from financial losses that may arise if a product they manufacture, supply, or sell causes harm to a consumer or damages property. - read more
The Cost of Public Liability Coverage: Is It Worth It? The Cost of Public Liability Coverage: Is It Worth It?
Public liability insurance is a crucial safety net for both businesses and individuals, providing protection against the financial fallout from claims of injury or damage that your business operations might cause to third parties. This type of insurance is designed to cover legal and compensation costs, safeguarding you from unexpected financial burdens. - read more


Start Here !
Your free liability insurance quote comparison starts here!
Cover Amount:
Postcode:

All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase
Insurance:
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of potential financial loss.