Senator David Pocock calls for change as more small business owners find they don’t have proper home insurance
25 Jul 2022 Source: ABC News Featured Image: Senator David Pocock
ACT independent senator David Pocock has taken up the cause of small and micro business owners who have found their pursuits can void their home and contents insurance.
An ABC investigation earlier this month revealed insurance holders with ABNs registered at their home may not have cover.
Since then, several people have come forward about immediate cancellations of their policies.
Key points:
- Senator David Pocock wants change so Australians don’t find their small business or side hustle voids their home insurance
- Assistant Treasurer Stephen Jones says he’ll talk to regulators and the Insurance Council of Australia, to see if a “pragmatic workaround” can be found
- A Canberra filmmaker had his home insurance policy cancelled because he was operating his small business from his residence
Senator Pocock said the emerging issue had the potential to impact thousands of small and micro businesses across the country, and he wanted to help find a solution.
“Ninety-seven per cent of Australian businesses are small businesses, so this is affecting a huge number of people, it’s something that we really need to look at,” he said.
“It makes no sense to me that even if you do have home and contents
and small business insurance, that you’re not covered because of this.”
Insurance is regulated federally, and Senator Pocock is calling on the Albanese government to address the issue as a matter of urgency.
He said he had already scheduled meetings with the Australian Small Business and Family Enterprise Ombudsman and was writing to Assistant Treasurer Stephen Jones, the Australian Financial Complaints Authority, the Insurance Ombudsman, and the Insurance Council of Australia.
“Insurance is so crucial, you don’t need it until you need it.
We really have to be looking at what are the solutions here,” he said.
Assistant Treasurer Stephen Jones has responded, saying he wants to talk to the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and the Insurance Council of Australia “to see if we can get a very pragmatic workaround on this.”
“I think what’s been extraordinary, is that over the last two-and-a-half years we’ve had – at some points in time – the majority of Australians working from home who could,” he said.
“I’d hate people who, through no misleading behaviour of their own, found themselves uninsured when they’ve done everything in good faith.”