Townsville Enterprise has this week submitted recommendations to the Australian Small Business and Family Enterprise Ombudsman’s review into Public Liability Insurance which has become near impossible to obtain leading to the closure of local tourism businesses.
There has been an average rise in Public Liability insurance costs of approximately 35%, with the adventure-based tourism experiences feeling the brunt of these price rises or facing challenges in obtaining insurance.
The submission provided insights and key metrics into the Townsville North Queensland amusement, leisure, and recreation sectors and several challenges impacting the viability of business operations. Following comprehensive consultations with our region’s tourism industry, Townsville Enterprise believes the risk environment for public liability litigation can only change through government intervention.
We believe that the Discretionary Mutual Fund (DMF) proposed by the Ombudsman could be a viable solution for the short term, but the fundamental challenge around rising claims will still exist and need to be addressed. Securing Public Liability will also flow into other sectors (construction, childcare etc.). In conjunction with the DMF, we're recommending:
- A review into the ‘no win, no fee’ litigation arrangements
- Introduction to capped public liability payouts
- Government intervention and review of both State and Federal legislation could review tort law and associated liability payments in case of fault or breach of duty of care
- Government funded, insurance industry-supported educational program with the tourism industry to support increased risk mitigation measures within businesses