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.

Sep 19, 2026

6 cards · 1m 20s · tap to begin

From · · 1m 20s

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.

In brief

Arson attacks over illegal tobacco trade are spreading financial damage to neighbouring businesses, which insurers are now refusing to cover. Firebombings linked to illegal tobacco syndicates are forcing insurers to deny coverage to shops near tobacconists, leaving legitimate businesses exposed to financial loss…

Firebombs spread damage beyond target

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

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.

What matters most

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

Read the original on the Guardian

React

Sign in to react and comment.

Comments (0)

Life is short. Keep it sweet. Respect others' opinions and be kind!

    Recommended next

    More decks on tobacco and related topics.