Insurers deny cover to shops near tobacconists over gang violence
A Melbourne business faces insurance denial because a tobacconist is nearby.
A Melbourne business owner says QBE declined to renew their insurance. The only reason was a newsagent and tobacconist three doors away.
Other insurers will offer insurance but exclude damage or fire that starts in the tobacconist. The issue comes from the tobacco wars.
Criminal groups firebomb tobacconists to control the illegal cigarette trade. Australian Crime Intelligence Commission data links criminal groups to more than 200 firebombings.
These target both illegal and legal sellers. The problem got worse in Victoria.
In one Richmond arson attack, fire spread to 10 neighbouring properties. Parliament's joint committee on small business insurance is now investigating the issue.
Why it mattersInnocent business owners face insurance denial or exclusions for risks they cannot control.
AustraliaRetailers and landlords across Victoria are reporting premiums doubling or policies cancelled; one WA landlord faced $75,000 in extra costs when a tobacconist moved into their building.
✓ Claims checked against the source and corrected before publish. checked 9 d ago
