As featured in the November edition of Bowler Magazine
With storm season approaching, many Queensland bowls clubs will be keeping a close eye on the weather. Severe storms and flooding can damage clubhouses, greens and outdoor facilities, often with little warning.
For a licensed club, storm damage is rarely just a property issue. A closure can also affect trading, staff, bookings and licensing. Understanding who is responsible for repairs, what your insurance covers and what other contractual obligations apply can help minimise disruption.
Who is responsible for storm damage repairs?
Many bowls clubs lease their premises from local councils or other landlords. The lease will usually set out which party is responsible for maintaining and repairing the premises. It may also allocate responsibility for damage caused by storms, floods, or other events beyond the club’s control.
However, some leases place responsibility for structural or capital repairs on the landlord, while others place broader obligations on clubs to maintain and repair all buildings, fit-outs, bowling greens and other improvements.
Clubs should check whether your lease:
- Requires you to notify the landlord of damage within a set timeframe;
- Requires the landlord’s consent before repair or reinstatement works are carried out;
- Provides for rent reductions or suspension while the premises cannot be used; and
- Allows either party to end the lease if the premises are substantially damaged or destroyed.
Clubs should also identify who owns and is responsible for insuring improvements they have funded, such as bowling greens, lighting, shade structures and irrigation systems.
Does your club's insurance cover storm and flood damage?
Business interruption cover
Not all insurance policies respond to weather events in the same way. A policy may cover storm damage but exclude flood or define “flood” and “storm” differently.
Business interruption cover can be just as important as building insurance. It may help meet lost revenue and certain ongoing costs, such as wages and rent, while the club is closed However, waiting periods, indemnity periods and other limitations or conditions may apply.
Steps to take after property damage
When damage occurs, clubs should promptly notify their insurer or broker, photograph the damage (including damaged stock), and take reasonable steps to make the premises safe and prevent further loss.
Before commencing permanent repairs, clubs should check whether insurer approval is required. It is important to keep records of all costs, lost trading, quotes and correspondence to support any claim.
How a closure affects staff, bookings and licenses
If a club cannot trade, it must carefully consider its obligations to employees. Depending on the circumstances, staff may be stood down under the Fair Work Act 2009 (Cth) or the applicable award or enterprise agreement.
Function bookings and supplier agreements should also be reviewed to determine refund, rescheduling or cancellation obligations.
If a club proposes to trade from temporary premises or change how it uses the premises during repairs, it should first check whether approvals are required under its liquor or gaming licences, or other regulatory requirements.
Resolving insurance, landlord and contractor disputes
Storm and flood damage can lead to disputes with landlords over repair obligations or rent reductions, insurers over policy coverage, and with contractors over repair and reinstatement works.
If the insurer denies or disputes a claim, clubs can generally use their insurer’s internal dispute resolution process and, where eligible, refer the dispute to the Australian Financial Complaints Authority.
How Mullins can help
Don’t wait for storm clouds to gather. Clubs should review their leases, insurance policies and key contracts before storm season, so you understand your obligations and the steps required if damage occurs.
If your club requires assistance reviewing its lease, insurance or contractual obligations, or resolving a dispute following storm or flood damage, please contact Matthew Bradford at Mullins Lawyers.
