Hervey Bay MP David Lee slams insurance companies in parliament speech

Hervey Bay MP David Lee revealed the shock cost for one Hervey Bay small business amid concerns claims would be denied or withheld.

State MP for Hervey Bay David Lee has revealed the shock cost for one Hervey Bay small business as he addressed parliament on insurance companies withholding or denying claims following the flooding event in March this year.

Hervey Bay MP David Lee has lambasted insurance companies for withholding and denying small-business claims in the wake of March’s historic flooding.

Mr Lee made the comments in parliament on Thursday with an impassioned plea for companies to not “hastily disclaim liability” for business owners with “profound concerns” over their insurance claims.

“Small business owners work incredibly hard. They are the lifeblood and backbone to our Hervey Bay community,” Mr Lee said in his opening remarks to parliament.

“The main issues identified were insurance difficulties and mental and emotional anguish.

“Distraught business owners are being asked to complete hydrology reports and they are reporting that insurance claims are either rejected or substantially delayed.”

Member for Hervey Bay David Lee at Sugar Coast Village on Monday.

Mr Lee highlighted the Woolworths in Pialba, and said its closure for 14 weeks following the extensive damage it suffered has caused less foot traffic in the complex for other tenants including Scotty’s Mad About Meats.

“Scotty’s butcher shop has been extensively damaged and he estimates at least $300,000 in replacement fit out costs,” he said.

“In all my engagements with flood affected small business owners they are expressing profound concerns about the diminishing prospects of success regarding their insurance claims.

“Some insurance companies have been great, while others appear to be hastily disclaiming any liability for flood damage.”

Debris in the Woolworths Pialba precinct. Picture: Phillip Fynes-Clinton

Another business that was hit hard by flooding in the village was Sam Meek and her business, Obsessive Coffee Dispensary.

She feared the worst for her insurance coverage, after, storm drains behind her store overflowed and filled her cafe.

“Our insurances aren’t going to cover this, because it’s negligence,” she said, back on March 9, 2025.

Sam Meek, owner of OCD Coffee in Bay Plaza, Pialba.

The rain event, starting at around 5am on March 9, 2025, left thousands with flood damage and sections of the town without power for days on end.

According to the Hervey Bay Business Recovery Hub, which was set up on Main St in Pialba by the council after the floods, 26 businesses sought support and a further 77 businesses were engaged through direct outreach efforts.