A homeowner who said his broker misled him into believing his policy would cover make-safe work has lost a bid to make the intermediary liable for his loss.

The dispute arose after trees on the insured property were damaged during a storm.  

The man initially sought a payout from his insurer for debris removal, but was told the policy would not respond to the removal of trees that did not damage any property.  

He then told the Australian Financial Complaints Authority that broker Aon misled him during a conversation last December by directing him to complete make-safe work, assuming the insurer would cover it.  

The man provided the authority with an invoice for $17,217 for tree removal to allow safe access for machinery supplies, and a second invoice for $7370 in further removal.  

Aon said its broker did not mislead the complainant and had “simply conveyed the information from the insurer to the complainant”.  

It provided the authority with contact notes from the insurer showing it suggested “to remove dangerous hanging limbs as part of a make-safe with the provision that photos were taken of the tree limbs being removed”.

The broker said it emailed the insurer on December 21 to ask why the make-safe work was not covered by the policy.  

“Our client has now been informed by the assessor that this ‘make-safe’ work is not covered – surely this would be considered make-safe, as the alternative would be a risk of loss of life due to either electrocution or being struck by a falling tree or limb?” the broker wrote to the insurer.  

The complaints authority’s decision acknowledges the insured completed the work on the understanding he would be covered, but it does not accept the broker’s actions prejudiced him.

It says the broker fairly informed the claimant that he was to have the work documented, and that there was no correspondence showing the greater scope of works would be covered under the policy.  

“The broker did not make a statement or engage in conduct that was misleading and deceptive, simply by conveying this information,” the authority said. “If the information provided was incorrect, it is not the broker’s fault for simply conveying what the insurer said.”

It also notes that even if the information was misleading, it is unclear if the insured suffered a loss, given the insurer would not have covered the work in any circumstance.  

“Regardless of what the policy says, the complainant would have had to conduct make-safe works at the property in any event. Even if the broker conveyed information from the insurer that was incorrect, it is not the broker’s fault because the broker conveyed what the insurer told it.

“On that basis, the broker should not be held liable.” 

Click here for the ruling.