# Firebombs force insurers to abandon tobacco shops

> Arson attacks over illegal tobacco trade are spreading financial damage to neighbouring businesses, which insurers are now refusing to cover.
- Title: Firebombs force insurers to abandon tobacco shops | Shortify
- Summary: Arson attacks over illegal tobacco trade are spreading financial damage to neighbouring businesses, which insurers are now refusing to cover. Firebombings…
- Keywords: tobacco, arson, insurance, melbourne, illicit trade, small business, crime syndicates, australia, news, world, Firebombs, force
- Source: the Guardian — https://theguardian.com/australia-news/2026/sep/20/tobacco-shops-attacks-melbourne-ntwnfb
- Published: 2026-09-19T20:00:57+00:00
- Read time: 1 min
- Topics: tobacco, arson, insurance, melbourne, illicit trade, small business, crime syndicates, australia, news, world
## Firebombs spread damage beyond target
A Richmond tobacco shop fire in Melbourne destroyed the store and nearly a dozen neighbouring shops, requiring eighty firefighters to contain.
## Crime syndicates wage tobacco turf war
Rival groups have carried out more than two hundred firebombings across Australia since twenty twenty-three, fighting for control of the illegal tobacco market.
## Insurers refuse to cover nearby shops
A Melbourne retailer was denied insurance renewal because they were a few doors down from a tobacconist. Other quotes excluded fire cover entirely.

> Even if we re-located, which is not really an option for us, who's to say a tobacconist doesn't move in next door?
## Proximity rule catches legitimate businesses
Brokers generally consider proximity to a tobacconist as within about twenty metres. Tobacco retailers in shopping complexes are seen as lower risk.
## Illegal tobacco dominates Australian market
Illicit tobacco accounted for eighty percent of cigarettes smoked by Australians in twenty twenty-five, costing as little as ten dollars versus over forty dollars legally.
## Debate splits over how to fight black market
Politicians debate cutting tobacco excise to make legal cigarettes cheaper. Health experts instead call for enforcement to intercept illegal imports at ports.
## Key takeaway

Firebombings linked to illegal tobacco syndicates are forcing insurers to deny coverage to shops near tobacconists, leaving legitimate businesses exposed to financial loss.