Restaurant Insurance Online :: News
SHARE

Share this news item!

ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues

ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues

ASIC Takes Hollard Insurance to Court Over Significant Claim Handling Issues?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings in the Federal Court against Hollard Insurance, alleging a breach of the duty of utmost good faith.
This action is in response to what ASIC describes as Hollard's "egregious" handling of a home and contents insurance claim filed by a couple from regional Victoria.

ASIC's case against Hollard revolves around the insurer's handling of the couple's claim following storm damage to their property in October 2021. The regulator claims Hollard's excessive delays and failure to conduct essential make-safe work have rendered the couple's home uninhabitable, leading to extensive moisture, mould, and decay issues that necessitate demolition and rebuilding.

Sarah Court, ASIC's deputy chair, highlighted the seriousness of the delays, stating that such prolonged inaction is unacceptable and potentially unlawful. The legal action aims to address growing concerns about increasing general insurance complaints and send a strong message about the unacceptability of such delays.

The claim, initially filed in October 2021, took Hollard nearly three and a half years to resolve. The insurer rejected the claim in April 2023, 18 months after its submission. Following this, the couple sought intervention from the Australian Financial Complaints Authority, which directed Hollard to provide compensation for non-financial losses and substantiated the storm as the proximate cause of the damage.

Hollard eventually consented to a cash settlement exceeding $1.5 million. However, ASIC contends that despite initially accepting the claim, Hollard delayed decisions regarding repairs, took over nine months to arrange a structural engineer inspection, and postponed the provision of temporary accommodation.

Responding to the legal action, a Hollard spokesperson acknowledged the proceedings and expressed support for ASIC's efforts in fostering consumer-positive outcomes. They noted Hollard's cooperation with ASIC but refrained from further commenting due to the ongoing nature of the legal matter.

Published:Monday, 14th Apr 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

Sign in with Google to rate

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

What Cyclone Alfred Recovery Means for Restaurant Insurance
What Cyclone Alfred Recovery Means for Restaurant Insurance
04 Aug 2026: Paige Estritori
Australia’s ongoing recovery from Ex-Tropical Cyclone Alfred is a timely reminder that severe weather losses are not limited to homes and large infrastructure. Restaurants, cafés and takeaway venues can face a difficult combination of water damage, spoiled stock, damaged equipment, power outages, access issues and interrupted trading after a major storm event. - read more
Why Claims Handling Scrutiny Matters for Restaurants
Why Claims Handling Scrutiny Matters for Restaurants
28 Jul 2026: Paige Estritori
Fresh attention on insurance complaints and claims handling is a timely reminder for Australian restaurant and café owners that the value of a policy is often tested well after it is purchased. The Australian Financial Complaints Authority’s latest complaints commentary has again put the spotlight on delays, communication breakdowns and disputes over policy interpretation across the general insurance market. - read more
What Victoria’s Bushfire Loss Estimate Means for Restaurant Cover
What Victoria’s Bushfire Loss Estimate Means for Restaurant Cover
21 Jul 2026: Paige Estritori
Australia’s latest bushfire loss update offers a practical warning for restaurant, café and hospitality operators: natural catastrophe risk is not confined to homes, farms or large industrial sites. Perils has lifted its estimate for the January 2026 Victorian bushfires to $860 million, with commercial properties accounting for the largest share of insured losses. - read more
Why a Food Delivery Theft Claim Matters for Restaurant Insurance
Why a Food Delivery Theft Claim Matters for Restaurant Insurance
14 Jul 2026: Paige Estritori
A recent insurance dispute involving a food delivery business offers a practical warning for Australian restaurant and café operators: if a location is not listed on the policy schedule, the cover may not respond when something goes wrong. - read more
What Haven’s New Liability Offering Means for Restaurants
What Haven’s New Liability Offering Means for Restaurants
05 Jul 2026: Paige Estritori
Australian hospitality operators have another liability option to watch, after Haven Underwriting added broadform liability cover to its product line-up, backed by capacity from Mitsui Sumitomo Insurance. The product is aimed at several customer groups, including cafés, restaurants, wine bars and associated hospitality risks, with a stated limit of up to $20 million per policy. - read more
Click for more Insurance News


Restaurant Insurance Articles

The Role of Staff Training in Reducing Liability Risks in Your Restaurant
The Role of Staff Training in Reducing Liability Risks in Your Restaurant
Running a restaurant involves navigating a myriad of potential liabilities. From food safety issues to customer injuries on premises, the risks are numerous. In recent years, liability concerns have become even more pressing in the restaurant industry, as businesses face strict regulations and the potential for costly litigation. - read more
Finding the Right Insurance Partner: A Guide for Australian Restaurants
Finding the Right Insurance Partner: A Guide for Australian Restaurants
Running a restaurant in Australia comes with its own set of unique challenges and risks. From busy kitchens to bustling dining areas, every corner of your establishment holds potential liability issues. Understanding these risks and how they can affect your business is crucial for safeguarding your investment. - read more
The Legal Risks of Running a Restaurant: How Insurance Can Safeguard Your Business
The Legal Risks of Running a Restaurant: How Insurance Can Safeguard Your Business
Running a restaurant in Australia is exciting and full of potential, but it's not without its legal challenges. From compliance with food safety standards to managing employee relations, restaurant owners must navigate a complex web of regulations and potential legal issues. Issues such as slip and fall accidents, supplier disputes, and licensing can all pose significant risks. - read more
Navigating the Insurance Landscape: Financial Strategies for Restaurant Owners
Navigating the Insurance Landscape: Financial Strategies for Restaurant Owners
In the bustling world of hospitality, restaurant owners face a unique set of challenges that can impact their financial stability. From unexpected kitchen mishaps to customer accidents, understanding the unique risks in the hospitality industry is crucial. These risks can lead to significant financial burdens if not properly managed. - read more
How Your Claims History Affects Insurance Premiums for Restaurants
How Your Claims History Affects Insurance Premiums for Restaurants
Running a restaurant in Australia comes with its own set of challenges, particularly when it comes to navigating legal risks. For restaurant owners, understanding these risks is crucial in safeguarding their businesses from potential financial hardships. - read more

Knowledgebase
Moral Hazard:
The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.

Quick Links: | Restaurant Insurance Australia | Restaurant Business Insurance | Public Liability Insurance For Restaurants | Commercial Vehicle Insurance For Restaurants | Restaurant Contents Insurance | Restaurant Stock Insurance | Income Protection For Restaurant Owners | Restaurant Insurance Quotes | Restaurant Insurance Coverage
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.