Tobacco wars: Police issue warning to property owners of potential insurance risk if tenant’s store firebombed

A senior WA police officer says at least five illicit tobacco stores have shut shop in the South West after landlords realised they were at risk of being unable to claim insurance payouts following an arson attack. Superintendent Paul van Noort urged all property owners and investors to “remain vigilant” about what their tenants are selling as they may be unable to claim compensation after an arson attack if illicit products are sold at a given store. “Landlords and managers should be aware that if a tenant is involved in criminal activity, such as the sale of illicit tobacco or vapes, there may be significant insurance implications should a serious incident occur on the lease premises,” he said. “This can place your financial interests as well as the safety of those around you at considerable risk. “Don’t be under any illusion, organised crime groups are not legitimate business partners — they’re not your allies, and they will not protect your interests. “Their involvement in your premises serves only their own criminal objectives, and they’re likely to betray your trust, cause financial loss, damage your property, and compromise the health and safety of you and others. Supt. van Noort said he was aware of five premises in the last week and half had been shut down in the South West because property managers and investors had taken “proactive action”. “We’ve been very proactive in that space, we’ve been speaking to property managers and where we can, investors as well, but primarily property managers, and just reminding them of the risks that exist,” he said. “They’ve got to understand, this is not about selling a cheap pack of smokes, this is about organized crime trying to reach in and establish themselves here in Western Australia, and we’re having none of it.” “Ultimately, I don’t think a lot of these investors have considered that . . . they certainly need to protect their own assets as well, because it can end up costing them a lot of money, or worse, costing somebody their life.” The Insurance Council of Australia was approached for comment. Firebombings have wreaked havoc over WA in recent months and saw the destruction of Bunbury beauty salon Allure Beauty & Co after the shop was caught in the cross fire of an arson attack on a neighboring convenience store. Pressure on the government to swiftly introduce promised laws, which would see immediate shut down orders issued if retailers are caught selling illicit products, has yet to see legislative changes. A $5 million crack squad, spreading the responsibility of lawful tobacco sale enforcement between elite investigators from WA Police and the existing compliance officers at Department of Health, was announced by Roger Cook on Sunday. Police Minister Reece Whitby said the new squad — to be led by police veteran Superintendent Steve Post — still won’t be able to shut stores down, until new legislation is passed later this year.