By Parker McKenzie
A Belgrave business is shutting up shop after being unable to find an insurance policy to cover the home business, as insurance issues throughout the hills become more common for individuals and businesses.
Ernie Gruijthuijsen, the owner of Care You Love, said despite having a policy for the previous 12 years, no insurance company will cover his home content insurance because he runs his business from home.
“The biggest issue is that it is very hard to understand what is the actual risk that they’re trying to mitigate?” he said.
“You can’t get an answer from them on that.”
Care You Love is a boutique producer of skincare products, which Mr Gruijthuijsen sold at markets around the Dandenong Ranges. Ingredients for the products were grown in his own garden, before being created at home.
He said the most disappointing part of the ordeal is that he knows it will affect more people than just himself in the future.
“People who create something different or offer a unique product that has a loyal following and have people that appreciate what you make, a lot of that is going to disappear,” he said.
“A lot of people have probably started some side hustle and they would like to convert that into their own business.
“When it starts off, you want to build it up without too much overhead cost. Then you’re going to find yourself constrained by the fact that the minute you say I’ll do it as a business from home, you might just lose my home contents insurance.”
When the Insurance Council of Australia —the representative body for the insurance industry —was asked what options home businesses have if insurance companies won’t cover them, a spokesperson said “specific insurance products are available for people who operate a business from home.”
“These products can cover home building, home contents and the business. Policyholders who run a business from home should review their insurance cover to ensure they have adequate and appropriate cover for their personal situation,” the spokesperson said.
“Calling your insurer to seek guidance and assistance is the first step, to understanding if your cover meets your needs.”
When asked if people who put in claims are more likely to be rejected from new insurance policies, the Council said it was a matter for individual insurance companies.
Mr Gruijthuijsen put in a claim around four years previously when a tree fell onto his home and damaged it, but said he hasn’t made a claim in relation to his home business.
He said he would warn people who are interested in starting a business from home to make sure they are across their policy first.
“You better make sure that you understand what your Product Disclosure Statement from your insurance says, like if you are still covered,” he said.
“You need to read the fine print and read your documentation because you might find out that you’re no longer covered.”
