In this case, a Suncorp customer filed a storm damage claim for his property. During the claims process, it was revealed that his wife operated a waxing salon from their home. The salon featured business signage, an online booking system, and active social media pages promoting its services. Despite these indicators, the couple had not disclosed the business activities when obtaining their home insurance policy.
AFCA determined that the salon's operations, including charging for services and maintaining a client base, classified it as a business. Consequently, the non-disclosure of this information led to the denial of the insurance claim. This ruling underscores the importance for beauticians and other professionals running home-based businesses to accurately disclose their operations to insurers to ensure proper coverage.
For beauticians operating from home, this case highlights the necessity of obtaining appropriate business insurance. Policies such as public liability and professional indemnity insurance are crucial to protect against potential claims arising from business activities. Additionally, ensuring that home insurance policies reflect the presence of a business can prevent complications during claims.
In summary, AFCA's decision serves as a critical reminder for home-based beauticians to fully disclose their business activities to insurers. Proper disclosure and appropriate insurance coverage are essential to safeguard against potential financial losses and to ensure compliance with insurance policy terms.
