NIBA / Special Feature
But, even if the property owner doesn’t know vapes are being sold, there’s a huge risk if something does happen. McEnery says, “We are now hearing of policy conditions where if illegal vapes or cigarettes are found on premises after an arson attack, then the policy may be rendered null and void.” Which, of course, could lead to significant liability issues for those commercial property owners, because the potential impact isn’t confined to the shop selling vapes and cigarettes on behalf of the gangs. Nearby stores are often caught in the crossfire, while mistaken identity or incorrect addresses can see shops suffer a seeming random arson attack. It is usually the neighboring businesses that experience the real interruption to legitimate trade. Knowing who to turn to While prevention is the ideal, it seems an incredibly difficult task to put that particular genie back into the bottle – so for brokers, knowing who to turn to if and when an arson attack happens to a client is now an essential consideration.
“For a broker, part of the value proposition is the ability to immediately take steps in regards to mitigation,” says McEnery. “If a store burns down on a Saturday night, and you ring the insurance company you might not get an immediate answer. But if the placing broker has taken the step to have a panel loss adjuster written into the policy, the adjuster can get a team organised to deal with the problem that night. They'll arrange a make safe with panel builders and work with all parties to try to get the shop open again as quickly as possible. “If they are on site that evening, they will be talking to the police. For example, the Sedgwick team collaborates closely with Victoria Police and have run shared training sessions with the Lunar Task force (the specialist tobacco division) for the insurance industry. The adjuster will also liaise with councils to gain the necessary permission for access or works.
“It’s the reality of the situation that brokers lose clients due to poor customer experience when their client needs them most – when a claim arises – brokers should be proactively engaging with their carrier partner to agree service requirements for their clients at inception or renewal or midterm - Nominating adjusters and having them on standby helps to control this scenario preemptively for the insured and the insurer." This is just one example of how being across different issues and challenges can genuinely help clients towards the best business outcome. In days gone by, the tenancy make up may not have been questioned past face value. Today, while it may be a difficult conversation to begin with, delving deep into the client’s risk, and strategically advising them about the potential risks they’re exposing themselves to, and how to manage and mitigate those risks, adds an enormous amount of value.
For more as this story develops, please contact Colin.McEnery@Sedgwick.com
44 / INSURANCE ADVISER FEBRUARY/MARCH 2026
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