As tobacconist firebombings intensify in Melbourne, nearby stores are being denied insurance

Shops near tobacconists in Melbourne are being refused insurance or charged far more. Rising firebombings have made neighbouring businesses expensive to cover. A recent blaze destroyed a Richmond tobacco shop and nearly a dozen nearby stores. It took 80 firefighters to bring it under control. One retailer said their insurer would not renew the policy because the shop was a few doors from a tobacconist.

Government figures count more than 200 firebombings of commercial and residential premises since 2023. Rival crime groups are fighting over the illegal tobacco market. Tough rules on legal tobacco have pushed buyers toward black-market sellers. That has made the trade more valuable to gangs. Insurers price cover by risk, so a dangerous neighbour can raise costs for shops that did nothing wrong.

A shop can lose its cover because of a crime it had nothing to do with. Without insurance, a single fire can shut a small business for good.