Lismore Pizza Restaurant Secures Insurance Payout After Stormwater Damage Dispute

Initially, the insurer, AIG Australia, declined the claim, citing a hydrologist's report that questioned whether the stormwater levels were sufficient to impact the building's floor level. The report suggested that stormwater runoff would have been directed towards the B Creek drainage system and may not have reached the restaurant's floor height.

However, the restaurant owner provided additional evidence, including CCTV footage and images, demonstrating that a stormwater pit outside the establishment was unable to cope with the accumulated water, leading to ingress well before the floodwaters arrived. This evidence was pivotal in substantiating the claim that stormwater, not just floodwater, caused the initial damage.

This case underscores the importance for restaurant and café owners to thoroughly understand their insurance policies, particularly the distinctions between stormwater and flood damage coverage. It also highlights the necessity of maintaining comprehensive records and evidence to support claims, as well as the value of seeking professional advice when disputes arise.

For hospitality businesses, ensuring that insurance policies are tailored to cover specific risks associated with their location and operations is crucial. Regular policy reviews and consultations with insurance professionals can help identify potential coverage gaps and ensure that businesses are adequately protected against unforeseen events.