When a small business lodges a claim, the gap between a fair outcome and months of silence often comes down to the standards the insurer has signed up to. The General Insurance Code of Practice sets out the standards that general insurers must meet when providing services to their customers, and those standards stretch across the whole relationship, from buying a policy through to claims handling and complaints.
For a builder waiting on a contract works claim, a cafe owner chasing storm damage, or an aviation operator with a grounded aircraft, the Code provides a framework to point to when something is dragging. It is not a magic wand, and it does not cover every policy in the market, but it gives small business claimants clearer expectations and a defined path when those expectations are not met.
The Code in Plain Terms
The General Insurance Code of Practice is a document that sets out specific standards insurers must meet whenever a customer buys insurance, makes a claim, is affected by a catastrophe, is experiencing financial hardship or other vulnerability, or makes a complaint.
General insurance companies in Australia volunteer to subscribe to the Code. In subscribing, insurers commit to high standards of service that extend beyond what is required by law. That voluntary element matters. The Code applies where your insurer has adopted it, so the first practical question for any small business is whether the insurer on your certificate of currency is a subscriber.
AFCA, the Australian Financial Complaints Authority, publishes information about the Code and describes it as requiring insurers, and other industry participants who have adopted it, to provide services to their customers in an open, fair and honest way.
Where the Standards Reach Inside a Small Business Claim
A redrafted Code sets standards of conduct across the insurance lifecycle. For a small business, the parts that matter most sit in the middle and the end of that lifecycle.
- Product disclosure, so a business understands what it is buying before a claim ever happens.
- Buying and renewing insurance, including the information an insurer provides at renewal.
- Claims handling, which is where most disputes between small business owners and insurers actually begin.
- Investigations, covering how an insurer conducts enquiries into a claim.
- Complaints, so there is a defined internal process rather than an endless email chain.
The Code also addresses how insurers respond to customers affected by a catastrophe, which is directly relevant for businesses with property in flood, fire or storm affected areas, and how they treat customers experiencing financial hardship or other vulnerability.
Timeframes Give Claims a Clock
One of the most useful features for a small business is that the Code sets out timeframes for insurers to respond to claims, complaints and requests for information from customers. A timeframe does not guarantee the answer a business wants, but it creates a marker. If an insurer has gone quiet, a business can ask a specific question: what does the Code say about when this response was due?
Timeframes also work in the customer’s direction. When an insurer requests further information to assess a claim, their obligation to respond sits alongside the customer providing that information. Small businesses that reply quickly, in writing, with the documents requested tend to keep a claim moving. Slow responses to information requests are one of the most common reasons a business claim loses momentum.
Open, Fair and Honest Is the Baseline
The Code requires subscribing insurers to provide services in an open, fair and honest way. In practice, that covers how a claim is communicated, whether the reasons for a decision are explained clearly, and whether the insurer deals with the business as a customer rather than as an adversary.
It is also a statement of intent that sits above the legal minimum. Subscribing insurers commit to standards of service that go beyond what legislation requires, which is why the Code is often the most practical reference point for a small business that feels it is being treated poorly but is unsure whether anything unlawful has occurred.
The Redrafted Code Raises the Stakes
A redrafted Code has been announced and described as consumer-centric, modern, fit-for-purpose and contractually enforceable. The shift to contractual enforceability is significant. It moves the Code from a set of commitments insurers are expected to honour into something with clearer consequences for insurers that fall short.
Commentary from professional services firm PwC notes that the redrafted Code sets standards of conduct across the insurance lifecycle, including product disclosure, claims handling and investigations, and describes it as both legally enforceable and reputationally critical for insurers. For small business claimants, that combination of legal weight and reputational pressure is a sound reason to reference the Code directly in correspondence if a claim stalls.
How to Raise a Concern About a Claim
If you believe a company may have breached the General Insurance Code of Practice, you can report your concern by emailing the Code Team or calling 1800 931 678. The Code Governance Committee oversees the Code and sits behind that reporting channel.
AFCA also publishes information about the Code and lists 1800 931 678 as a free call number, available 8am to 6pm AEST or AEDT on weekdays. There is a separate members line listed as 1300 56 55 62.
Most claims do not need to go that far. Raising the Code in a written complaint to the insurer, and asking for a response within the Code’s timeframes, resolves a large share of small business claim disputes before they escalate.
Records That Strengthen a Small Business Claim
Code protections work best when the business has its own paperwork in order. A few habits make a material difference when a claim is running.
- Keep the policy schedule and every renewal notice, so you can check what was disclosed at each renewal.
- Notify claims in writing, with the date, time and claim reference number.
- Retain a copy of every request for information and your response to it.
- Photograph and document damage or loss before repairs or replacement begin.
- Note the names of the people you speak to and what was discussed.
This is not about building a case against your insurer. It is about giving the insurer what it needs to assess the claim and creating a clear record if a timeframe slips or a decision needs to be reviewed.
Where the Code Stops and You Need to Check
The Code is not an unlimited guarantee. Publicly available summaries do not always set out clearly what sits outside its scope, and the detail changes with the redrafted version. If you need certainty on whether a specific policy, claim type or insurer is covered, check the current Code documentation and confirm the position directly with the insurer or the Code Governance Committee.
A broker can also confirm whether the insurers on a business’s program subscribe to the Code and what that means for the particular cover in place.
What This Means for Builders, Trades and Other Small Operators
Small businesses carry the cost of a slow claim differently to a household. A stalled claim can hold up a project, leave plant idle, or push a cash flow shortfall into the next quarter. That is why the Code’s claims handling, investigation and complaint standards carry more commercial weight for a small operator than headline cover limits alone.
At ABS Insurance Brokers, an Australian owned brokerage based at Bankstown Airport in Sydney, we arrange construction, commercial and general insurance for businesses across NSW and Australia. That includes contract works and liability cover for builders and contractors, builders warranty insurance guidance for NSW projects, plant cover, and business and property cover for trades, farms, hospitality venues and professional services firms. When a claim is lodged, the Code is one of the tools we use to keep the process accountable and moving.
Frequently Asked Questions
Does the General Insurance Code of Practice cover small business claims?
The Code sets standards insurers must meet when providing services to customers across buying insurance, claims, catastrophes, hardship and complaints. General insurers in Australia volunteer to subscribe to it, so coverage depends on whether your insurer has adopted the Code. For a small business, the practical step is confirming subscription with the insurer or through a broker before relying on it.
What timeframes does the Code set for claims?
The Code sets out timeframes for insurers to respond to claims, complaints and requests for information from customers. That gives a business a reference point when a response is overdue. The specific timeframes that apply to your claim type should be checked against the current Code documentation, and progress can also depend on how quickly you provide the information requested.
Can I report an insurer for breaching the Code?
Yes. If you believe a company may have breached the General Insurance Code of Practice, you can report your concern by emailing the Code Team or calling 1800 931 678. The Code Governance Committee oversees the Code. AFCA separately publishes Code information and lists the same free call number, available 8am to 6pm AEST or AEDT on weekdays.
What changed in the redrafted Code?
A redrafted Code has been announced and described as consumer-centric, modern, fit-for-purpose and contractually enforceable. It sets standards of conduct across the insurance lifecycle, including product disclosure, claims handling and investigations. Professional services commentary has described it as legally enforceable and reputationally critical, which gives customers a stronger basis for holding insurers to the standards.
Do I need a broker to use the Code?
No. The Code is available to customers regardless of how the insurance was arranged. A broker does help in practice by confirming which insurers subscribe, preparing claim information, tracking timeframes and escalating a stalled claim in the language the Code uses. For small businesses with complex or high value claims, that support reduces the time the owner spends chasing.
