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.
A homeowner’s request for compensation after discovering a large pit on his property was denied when it was revealed to be a decommissioned well, rather than a sinkhole.
The deep pit, which measured 4.5 meters, appeared beneath pavers just 1.5 meters away from the house in August 2022.
The homeowner contacted QBE insurance to lodge a claim, prompting the insurer to send a team to cordon off the affected area for safety.
The homeowner argued that the pit had been formed by a leaking pipe and believed the visible water flow at the bottom was evidence of such. He suggested that the water leak had caused soil erosion, exacerbating the formation of the pit.
In response, QBE appointed a forensic structural engineer to investigate. The engineer, assisted by a plumber, conducted several tests and authored three reports on their findings.
The investigation concluded that the pit resulted from the collapse of a well capping that had been in place for over five decades, predating the home's construction according to the neighborhood residents' accounts.
According to the engineer, the old well capping had eroded over time, explaining the presence of water at the base. Nearby sewer and stormwater pipes were examined, and it was found that water flow into the pit had been consistent. A sewer pipe leakage, identified approximately 19 meters from the pit, was determined to be too far away to contribute to its formation.
No legal or physical connection was determined to link the sewer leakage or any nearby pipes to the well's deterioration. The plumber validated the engineer's conclusions, confirming a lack of nearby pipe networks capable of forming a sinkhole.
The Australian Financial Complaints Authority (AFCA) later ruled in favor of QBE, citing comprehensive evidence provided by the engineer. The findings firmly established that the pit was a disused well, lacking any evident links to a leaking sewer or other leaks.
AFCA endorsed, "The expert evidence substantiates that the pit originates from a long-decommissioned well existing before the complainant’s house was built. Despite extensive testing, the results indicate no connection between any pipe leaks and the pit’s formation, the water at its base, or the erosion observed."
Though QBE did agree to compensate for incidental damages done during the examination process, including $1122 for the damage to the homeowner’s timber deck and an additional $1500 for the delays in processing the claim, which took over six months.
This case, initially reported by insurancenews.com.au, underscores the critical role of thorough expert investigation to differentiate between naturally occurring subsidence and structural failures caused by other factors.
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.
In a significant development for the Australian construction industry, MECON Insurance has announced an increase in its underwriting capacity, now offering coverage up to $120 million for single projects. This enhancement, effective from March 10, 2026, applies to Section 1 (Material Damage) and includes Section 2 (Public Liability), providing more substantial support for larger and more complex construction ventures. - read more
In a strategic move to bolster cyber resilience among Australian small and medium-sized enterprises (SMEs), Zurich Financial Services Australia has partnered with Cowbell, a specialist in adaptive cyber insurance solutions, to launch 'Prime One.' This innovative cyber insurance product is designed to provide comprehensive coverage tailored to the unique needs of SMEs, offering a streamlined and efficient insurance experience. - read more
Guardian Insurance Brokers, an Adelaide-based firm, has been honored with the Large Brokerage of the Year award by Insurance Business Australia for the second consecutive year. This prestigious accolade underscores the company's unwavering commitment to client advocacy and service excellence within the Australian insurance industry. - read more
In a significant move to bolster the resilience of Australian strata communities, CHU Underwriting Agencies has integrated cyber protection into its residential strata insurance policies. This enhancement specifically targets the growing risk of social engineering fraud, a form of cybercrime where malicious actors impersonate trusted contacts to manipulate payment instructions. - read more
Suncorp, a leading Australian insurer, has strategically reclassified its strata insurance business from consumer to commercial, signalling a concerted effort to expand its footprint in the strata insurance market. This move aligns with the company's broader strategy to enhance its commercial insurance offerings and leverage synergies within its portfolio. - read more
Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more
Liability insurance is a crucial form of protection that offers coverage against claims resulting from injuries and damage to people or property. Within the bustling landscape of Australian businesses, possessing this form of insurance is key to financial security and continuity. It acts as a safety net, ensuring businesses can manage risks without bearing the full brunt of potentially costly legal claims. - read more
Public liability insurance is designed to protect your business from financial loss if you are found liable for causing injury or property damage to a third party. This type of insurance covers legal costs and any compensation claims that might arise from accidents or incidents involving your business operations. - read more
Welcome to our comprehensive guide on public liability insurance. If you run a business, you've probably heard this term thrown around quite often. But what exactly is public liability insurance? - read more
Public liability insurance is a type of coverage designed to protect businesses and individuals from the financial fallout associated with claims for injury or damage caused to third parties. It is particularly crucial for event organizers, who are responsible for ensuring the safety and security of attendees, vendors, and participants. - read more
Start Here !
Knowledgebase
Public Liability Insurance: A very broad term for insurance covering liability exposures for individuals and business owners. It provides broad coverage, generally including all exposures for property damage and bodily injury.
