A business has failed to win an increased payout for tools and a trailer stolen from a worksite after the industry ombudsman backed QBE’s claim handling.

The policyholder lodged a claim on December 18 last year, and QBE paid out $14,000 on January 13 this year.

QBE said it could limit the payout under the portable items section of its policy.

The insurer also paid $9446 for business interruption between December 18 and January 16, based on its forensic accountant assessments.

The business said the policy offered coverage of $100,000 for theft of contents.

It said QBE should cover all contents lost, worth about $120,000, and pay $28,000 for the trailer. The policyholder also sought a higher business interruption payout.

The insured said it had been told before the policy’s start that tools and equipment would be covered under the contents sum insured. It added that different worksites could be called its “business premises”.

The business argued it was not clearly advised of the limit for portable contents and it would not have bought the policy if it was.

But the Australian Financial Complaints Authority says the complainant has not proved it was misled.

The policy was bought via an online portal on December 9 last year and there is no record of any other interaction between the complainant and insurer until after the claim. The complainant was asked to supply proof for its case but could not.

The stolen contents were not at the business location, so the portable contents provision applied.

The $28,000 trailer was not covered because the policy excluded motor vehicles, watercraft and aircraft.

“The complainant has not shown it received advice about the policy prior to its inception, and the insurer provided the complainant with the policy documents, in line with the insurer’s obligations,” AFCA said.

See the ruling here.

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