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Tobacconist landlords told coverage at risk amid firebombings

Police have warned shop landlords that illegal cigarettes and vapes found in tenants’ premises may invalidate insurance claims if there is an arson attack.

Firebomb attacks have hit 59 tobacco stores across Victoria amid a gangland turf war, and Taskforce Lunar detectives have arrested 62 people in connection with them.

Now, letters have been sent to shop owners across the state urging them to contact their insurers, warning of potential “adverse impacts” on coverage.

Victoria Police Crime Command acting commander Jason Kelly says criminal behaviour may affect insurance payouts to building owners.

“Owners need to be aware of this and of who is leasing the buildings they own,” he said.

“We need to look at innovative ways to target this issue. One way of doing this is by speaking to those who own these properties and lease them to people actively engaging in organised crime.”

Taskforce investigators notify insurers if there is evidence illegal products were sold from attacked premises, according to the letters dated May 21 and sent to landlords of properties where tobacco is sold.

“The [attacks] have led to general discussions between police and insurance companies. It is recommended that you raise this matter with your insurer forthwith as knowledge of this alleged conduct may adversely impact on the status of your insurance should it not be disclosed,” the letter says.

Police aim to highlight the dangers around businesses engaged in illicit activity, including “the risk to current insurance arrangements, as well as the potential for nearby businesses and properties to be adversely impacted by the fires and other criminal activity”.

The Insurance Council of Australia says it “has not been contacted about these deliberate attacks on tobacconists in Melbourne, and [is] therefore not privy to the particular details and circumstances. We suggest any impacted businesses or property owners appropriately consider any information and advice provided to them by the police.

“They should contact their insurer if they have any questions or concerns in relation to their insurance coverage.”