Townsville Enterprise calls for major review into Public Liability insurance
Industry simply cannot survive without real solutions
With litigation fears, policy cost and issues in obtaining cover threatening local business closure, Townsville Enterprise (TE) has this week submitted recommendations to the Australian Small Business and Family Enterprise Ombudsman’s review into Public Liability Insurance.
TE CEO, Claudia Brumme-Smith said given the state of the industry and additional challenges faced by the pandemic, the issue of Public Liability insurance has now become one of critical importance to the amusement, leisure, and recreation sectors.
“Compounded with the challenges that COVID-19 has caused, the tourism industry simply cannot survive without real solutions to the rising insurance challenges,” she said.
Local adventure-based tourism experiences in particular have been feeling the brunt of these price rises and facing challenges in obtaining insurance in the first place.
TE believes the risk environment for public liability litigation can only change through government intervention and that the Discretionary Mutual Fund (DMF) proposed by the Ombudsman could be a viable solution for the short term.
As part of its recommendations TE is calling for a review into the ‘no win, no fee’ litigation arrangements, an introduction to capped public liability payouts, government intervention and review of both State and Federal legislation, a review of tort law and associated liability payments in case of fault or breach of duty of care.
Additionally, the submission recommends a government funded, insurance industry-supported educational program with the tourism industry to support increased risk mitigation measures within businesses.
The submission follows comprehensive consultations with the region’s tourism industry and provides insights and key metrics into the Townsville North Queensland amusement, leisure, and recreation sectors and several challenges impacting the viability of business operations.
“On this current trajectory, the public liability issue will become much more widespread, with show operators, motor-based water sports and high adventure experiences like zip lines just the start,” Ms Brumme-Smith said.
“The issue is starting to be exaggerated due to a ‘no win, no fee’ litigation arrangement. This is causing a major increase in claims which is why insurance companies are ultimately reviewing how they measure risk and the appetite they have to insure perceived ‘high risk’ activities.“
Member for Herbert, Phillip Thompson OAM who is involved with Townsville Enterprise and local industry to work through the challenges said no business should ever have to shut down because they can’t afford insurance.
“It’s simply not good enough and we need to do everything we can to ensure there are other options available for local operators,” Mr Thompson said.
“The Australian Small Business and Family Enterprise Ombudsman has done a lot of work engaging with affected businesses nation-wide to reach the conclusion that a DMF is an option going forward, but this needs to be driven by industry, which is why it’s so important we provide feedback and case studies from here on the ground in Townsville.
“The Federal Government does not mandate public liability insurance, and the Ombudsman’s interim report makes clear that local, state and territory governments will need to be open to changing legislation to accept the coverage provided by a DMF, rather than an insurer.“
Mike Parker-Brown is a UK-trained and qualified journalist and an award-winning travel communicator with more than 30 years experience.
Since 2002, Mike has worked as a freelance writer and PR consultant providing his services to major organisations in Australia and internationally in the tourism, aviation, hospitality, recruitment and export marketing sectors.
