Gallagher has been ACAPMA’s insurance partner for more than
40 years. As a specialist broker for the fuel industry and convenience stores
sector, Gallagher handles a large number of claims which can serve as reminder
to other businesses in the industry of the risks they face on a daily basis.
Gallagher’s latest incident report features some major
claims events and trends that are relevant to businesses of all sizes right
across the sector.
Incident report June 2019
1. A disturbing trend is the recent incidence of attempts to
set service stations on fire. There have been two in New South Wales and now a
third in Queensland on the Gold Coast. The damage from this fire was
significant but contained and at this stage it is not clear whether the
customer started the blaze accidentally or with malicious intent.
2. The recent minor earthquake in Darwin has caused some
damage however a more serious tremor could cause major damage to fuel industry
3. The trailer and prime mover were written off but the
driver escaped with injury after a tanker rolled into a creek bed in southern
NSW. A significant loss was contained
and the recovery procedure, a focus of recent criticism by the authorities, was
accomplished within an appropriately swift time frame.
4. In sad news that no insurance professional ever wants to
hear, a fatality resulted from a collision between a tanker and a car in South
Australia. At this point the cause of the accident remains unknown.
At Gallagher we have been receiving increasing numbers of
reports of cyber ransom claims where fuel distribution businesses have been
held to ransom after their IT systems have been hacked and disabled. There have
been more of these in past couple of months than in the whole of the previous
year. Insurers have had to make the call on the worth of meeting ransom
demands, given the amount tends to be minor compared to the value of business
lost during suspended operations.
Environmental Protection Authority authorities are
escalating scrutiny of transport clients’ emergency plans, issuing show cause
notices and threats of harsh penalties. Businesses must make sure their
response plans are up to date and compliant. Gallagher’s industry experts can
help with these. They must be functional, especially if the business has had an
There is also EPA focus on wet stock management with regard
to SIRA monitoring capabilities and effectiveness, where there is
dissatisfaction with recorded readings.
In the tightening insurance market providers are refusing to
participate in several categories, which include the construction industry,
recycling and alternative fuel facilities in reaction to the discovery of
unsafe buildings, Asian markets refusing our waste and a narrow view of
acceptable risk presented by bio-diesel plants, for example.
Potential supply problems
Australia has approximately 70% dependence on imported fuels
and due to inadequate storage and facilities closures there is only about a 20
day reserve supply of fuel stock, which makes global events such as sabotage of
tankers in the Oman Channel and two major refinery fires in Europe and the US of
particular concern to local businesses. Gallagher is maintaining a watching
We have seen an uptick in disgruntled employees bringing
wrongful dismissal claims for legitimate terminations and advise our clients to
run your case past us at Gallagher before you take action against an
unsatisfactory staff member. We will have our lawyers check it for you.
If you need advice on risk management and insurance for your
business, contact Gallagher on 1800 571 941or visit ajg.com.au/transport to request more
information on their range of insurance solutions for the sector.