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Why Policy Details Matter Before a Home Service Claim

A recent insurance dispute highlights the risk of missing addresses, stored equipment and unchecked documents

Why Policy Details Matter Before a Home Service Claim?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A recent Australian Financial Complaints Authority decision has delivered a timely reminder for small operators: insurance protection depends on the details being right before something goes wrong.
The dispute involved a food delivery business that suffered theft and damage at a site that was not listed on its insurance schedule.
The business argued that its broker should have ensured the right cover was in place, but AFCA found the available records did not show that the business had instructed the broker to add the additional premises.

For domestic service operators, the lesson is highly practical. Cleaners, gardeners, mobile carers, home maintenance providers and other service businesses often shift equipment between a home office, vehicle, storage unit, client site or secondary workspace. If a policy only lists one address, or if tools and stock are stored in a way the policy excludes, a claim may become difficult even where the business genuinely believed it was insured.

The case also underlines that relying on a broker or adviser does not remove the business owner’s own responsibility to review documents. Brokers can provide valuable guidance, but they still need clear, timely instructions. If you lease a new storage area, move business assets to a garage, add a vehicle, hire staff, start using subcontractors or change the kind of services you provide, those changes should be communicated and documented.

This is especially important for home-based businesses, where personal and commercial arrangements can overlap. A home contents policy may not adequately respond to business equipment losses, and a business package may impose conditions around security, open-air storage, locked vehicles, alarms or listed locations. These conditions can matter just as much as the headline sum insured.

Before renewal, home service operators should do more than compare options on price. A useful review should include:

  • checking every insured address, including home offices, sheds, garages and storage units;
  • confirming where tools, equipment, stock and client property are kept overnight;
  • reviewing public liability, professional indemnity and business property limits;
  • asking whether vehicles, trailers or mobile equipment need separate cover;
  • keeping written records of all instructions sent to an insurer or broker.

The broader message is not that claims are destined to fail, but that policy accuracy is a risk management task in its own right. A few minutes spent checking schedules, endorsements and exclusions can prevent a stressful claim from becoming a dispute over what was, and was not, insured.

Published:Saturday, 11th Jul 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Indemnity:
A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.