Farm Insurance :: News
SHARE

Share this news item!

Local Business Triumphs Over Insurer in Power Outage Dispute

Local Business Triumphs Over Insurer in Power Outage Dispute

In a recent conflict, a small-business butcher has emerged victorious in a claims spat concerning the spoilage of goods and profit disruption, linked to a power cut incident amidst catastrophic flooding.

The wrangle ensued after the butcher, located in Ballina, NSW, suffered power loss during the notorious Northern Rivers floods in early March 2022. This critical blackout resulted in the spoilage of the business's refrigerated stock and cessation of operations.

QBE, the insurance company involved, assigned blame to the torrential flood, fortifying its stance with a hydrologist's account deeming the blackout as a probable ramification of the floods. The narrative was apparently supported by a communication from the electricity provider EE, which highlighted interruptions due to the dire flooding and consequential severe damages to the grid infrastructure.

Challenging this assertion, the aggrieved butcher presented an alternative sequence of events, highlighting an intentional power shutdown orchestrated by EE to maintain civic safety in anticipation of the floods, a singular detail casting doubt on the direct correlation between floodwater and power loss.

This perspective is endorsed by an assessment from the Australian Financial Complaints Authority, casting ambiguity on the initial claims of the energy deficit’s timing and contesting the clear association with the flood event. It recognized that the local network's 'de-energizing' aligned with numerous protective activities spanning from damage assessment to essential community safety precautions.

Moreover, the hydrologist’s conjecture, although initially an aspect of QBE's argument, lacked conviction and specificity. No electrical inquiry was conducted, thus adulterating the assertion that flood-induced blackout was the unequivocal cause of the outage.

In a backdrop of dynamic interpretations, EE’s contemporary accounts marginally united with the insurer's diagnosis but delivered granular details attributing to a more comprehensive, and less flood-focused, synopsis of proceedings.

Debates also kindled around QBE’s assertion over the content benefit of the insurance policy, which covered physical loss or damage but not the 'consequential loss' due to it, suggesting that additional coverage was mandatory to protect against knock-on effects. QBE's stance was that the refrigeration stock damage fell into the latter category. However, the butcher's contention, fortified by the authoritative panel, avers that there was no substantive basis for separating the stock from the core property within the context of this claim.

Concluding the dispute, the authority panel exposed inadequacies in the insurance company’s rationalizations. They reprimanded QBE’s failure to thoroughly elucidate its defense and vehemently supported the butcher's position that the spoilt inventory was indeed covered as direct physical loss. The claim, they decreed, was firmly nestled within the innate protective spectrum of the insurance policy's provisions.

Published:Thursday, 29th Feb 2024
Source: Paige Estritori

Share this news item:

Insurance News

Clarification Call: Insurers Challenged on Confusing Terms Amid Crisis Clarification Call: Insurers Challenged on Confusing Terms Amid Crisis
11 Apr 2024: .Paige Estritori

For two consecutive days, the flood-affected residents of Queensland have been voicing their concerns during the ongoing deliberations of a federal inquiry, tasked with examining insurers' responses to the catastrophes of 2022. The inquiry, in its concluding phase, conducted its second public hearing in the Logan area on April 10th, 2024. - read more
Revamping Strategies Against Climate Threats After Sky-High Weather Losses Revamping Strategies Against Climate Threats After Sky-High Weather Losses
10 Apr 2024: .Paige Estritori

The undeniable escalation in weather-related calamities has thrust insurers and governmental bodies into the spotlight, urging a tactical shift in Australia's fight against nature's fury. A recent assessment by prominent insurance broker Aon sheds light on the nation's susceptibility to meteorological mishaps. - read more
Claims Handling Issues Propel Code Obligation Breaches Upward Claims Handling Issues Propel Code Obligation Breaches Upward
10 Apr 2024: .Paige Estritori

The Life Code Compliance Committee (Life CCC) has recently published findings indicating an upsurge in code obligation breaches among industry participants, marking this as the third year of escalating incidents. Their report, 'Annual Industry Data and Compliance Report,' highlights a notable 9% overall inflation in the quantity of breaches during the period spanning from the 1st of July, 2022 to the 30th of June, 2023. - read more
Insurer Held Accountable for Overseeing Claim Delays Insurer Held Accountable for Overseeing Claim Delays
09 Apr 2024: .Paige Estritori

Following a detailed review by the Australian Financial Complaints Authority (AFCA), it has been determined that the insurance giant QBE must compensate a policyholder to the tune of an additional $65,000. This ruling emerged on account of identified delays, by the insurer's assigned loss adjuster, that stalled crucial repairs to a fire-damaged bed and breakfast in Tasmania. - read more
NSW Builders Receive Warnings for Insurance Compliance Failures NSW Builders Receive Warnings for Insurance Compliance Failures
08 Apr 2024: .Paige Estritori

New South Wales' prolific construction sector recently came under scrutiny after a regulatory check by the state's insurance watchdog. The recent audit zeroed in on a regrettable pattern where several builders skipped procuring legally required home building compensation insurance (HBC), putting the financial stability of various homeowners in jeopardy. - read more
Insurance Snag Leaves Vacationers Uncovered Insurance Snag Leaves Vacationers Uncovered
05 Apr 2024: .Paige Estritori

In a recent case concerning the intricacies of travel insurance, a couple's abrupt return from their Bali getaway proved to be a financial disappointment when their insurance claim was rejected. The encounter highlights the importance of understanding insurance policy details, particularly regarding single-trip and multi-trip coverage. This incident serves as a cautionary tale to all adventurers to scrutinize their travel insurance policies thoroughly. - read more



Farm Insurance Articles

How to Save Money on Your Farming Insurance Premiums How to Save Money on Your Farming Insurance Premiums
When looking for farming insurance, it is important to shop around for the best deals. Don't simply rely on the first insurance company that you come across. Take the time to research various companies and their policies. Compare them based on their coverage, premiums, and deductibles. - read more
Agribusiness Risk: Liability Issues Facing Australian Farmers Today Agribusiness Risk: Liability Issues Facing Australian Farmers Today
The agricultural sector in Australia carves a significant portion of the country's economy, contributing to its GDP and providing employment across rural and suburban areas. Thus, navigating the complexities of agribusiness is not just a matter of crop cultivation and livestock management, but also of understanding the intricate web of liability risks that come with the terrain. - read more
What You Need to Know About Crop Insurance for Your Farm What You Need to Know About Crop Insurance for Your Farm
Farming is a risky business. As a farmer, you are at the mercy of the weather, pests, and other challenges that can threaten your crops and your livelihood. That’s where crop insurance comes in. Crop insurance can provide financial protection in case your crops are damaged or destroyed, allowing you to recover from losses and move forward with your farm business. - read more
Livestock Insurance for Aussie Farmers: What You Need to Know Livestock Insurance for Aussie Farmers: What You Need to Know
Livestock farming is a significant part of the Australian agriculture industry. As with any business, farmers face numerous risks such as disease, death, theft or extreme weather events, which could cause damage or loss to their livestock assets. Livestock insurance provides cover against these risks, ensuring that farmers are financially protected from any potential financial losses, which could devastate their livelihoods. - read more
Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm
As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more
Navigating Farm Succession: A Step-by-Step Guide for Rural Australian Families Navigating Farm Succession: A Step-by-Step Guide for Rural Australian Families
Welcome to our comprehensive guide on navigating farm succession for rural Australian families. The journey of passing on a family farm from one generation to the next is both a critical and challenging milestone. Recognizing that every farm has its unique story and set of circumstances is fundamental to the process. - read more

Need a Quote?
Start your free farm insurance quote comparison here.
Farm Type:
Postcode:

Knowledgebase
Insurance Premium:
The periodic amount paid for the purchase of insurance.