Farm Insurance NZ
The dispute review by the Australian Financial Complaints Authority (AFCA) supported QBE’s decision to refuse coverage. However, AFCA held the Community Broker Network responsible for not thoroughly investigating the property or accurately completing the policy application. The broker claimed to have visited the property in 2016 or 2017, identifying only a single building and not noting asbestos or other hazards. Unfortunately, records substantiating this were unavailable due to their age.
The AFCA noted that the lack of documentation regarding critical client information showed a deficiency in the broker's duty of care. While the broker acknowledged omitting 'manufacturing' from business descriptions, they argued that QBE should have recognised the tenant's business nature, a health food operation, from past dealings. Despite this, the AFCA found no breach concerning the insurance amount chosen, as it aligned with the client's request to lower premiums.
Subsequent to policy cancellation, the client managed to secure coverage from another provider. In light of these circumstances, the AFCA ruled that the broker must compensate the client with $296,951, inclusive of interest, and cover legal expenses up to $5000. The panel deemed the broker's failures as the cause of the insurance gap that left the client unprotected against the fire loss and necessitated reimbursement for those damages.
The decision underscores the importance of comprehensive risk assessment and accurate record-keeping in the broking process, reinforcing brokers' obligations to their clients in arranging sufficient and appropriate policy coverage.
Published:Friday, 15th Aug 2025
Source: Paige Estritori
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Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
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