Business & Finance
Melbourne shops face insurance denial amid surge in tobacconist firebombings
The Guardian reports that small businesses near tobacconists face insurance losses or severe cost increases due to arson attacks.
The short version
- Small businesses located near Melbourne tobacconists are facing insurance cancellations or soaring premiums due to collateral damage from arson attacks.[The Guardian]
- Crime syndicates vying for control of Australia's illicit tobacco market have been linked to over 200 firebombings across the country since 2023.[The Guardian]
- Major insurers like Suncorp have stopped offering policies to tobacconists and are closely evaluating proximity risks for nearby shops.[The Guardian]
- Business groups and authorities highlight ongoing challenges with lost revenue, diminished foot traffic, and securing essential fire coverage.[The Guardian]
Key facts
- Crime syndicates have been linked to over 200 commercial and residential firebombings in Australia since 2023 amid an illicit tobacco turf war.[The Guardian]
- A recent firebombing in Richmond, Melbourne, destroyed a tobacco retailer and nearly a dozen neighbouring businesses.[The Guardian]
- Suncorp no longer offers or renews insurance policies for tobacconist retailers.[The Guardian]
- The Australian Bureau of Statistics found that illicit tobacco accounted for 80% of cigarettes consumed in Australia in 2025.[The Guardian]
What remains uncertain
- Insurers have not officially defined the exact distance that constitutes 'close proximity' to a tobacconist, though brokers generally estimate it at around 20 metres.[The Guardian]
- Suncorp statements left ambiguity regarding nearby store eligibility, balancing spokesperson claims of policy halts against underwriting assessments on a case-by-case basis.[The Guardian]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.