Queensland hostel operator Brent Gemmell is unimpressed with the constant rise of insurance premiums…
What is happening with our insurance? As an industry we have been stung well over the top for a long time now. But this year we have reached new heights.
We have been operating as a Backpackers/Hostel in Queensland for 15 years now, with not 1 claim! But still, due to being refused renewals for no valid reasons, we have had policies with 3 different insurance companies/underwriters in the last 5 years and with each one the premiums get higher and higher.
I heard through the grapevine we would have difficulties getting a reasonable deal this year, plus I got an email from our current broker warning of a major hike in the prices. So for the past 2 months I have had 4 brokers search the insurance world for affordable policies.
Result… The cheapest with the same cover as last year… 110% INCREASE in premiums.
Saying that, the most common response was a flat refusal. The most expensive you may be asking yourself… 230% INCREASE!!!!
I keep asking myself why?? I keep asking the brokers and insurance companies why?
Problem here is I can’t get any reasonable answers.
As a Backpackers/Hostel we are the most heavily regulated form of accommodation providers in the industry. We are scrutinised on an annual basis by the Fire Department and local council and the measures we have in place to comply with all the rules and regulations are thorough, to say the least…
I believe because we have become the lepers of the insurance world the underwriters/companies that will touch us have us over a barrel and think they can charge us what they like. And guess what… they are right. They do have us over a barrel. We can’t afford not to be insured and we can’t afford to be insured.
Please, any information on this most frustrating topic would be much appreciated.