2020 had a significant impact on our industry and created the need for our underwriting security provider, CGU Insurance, to review their position on a number of topics to help better manage risk and align to our Reinsurance Treaty.

Separately to this, on 18 February 2020, the Australian Securities and Investment Commission (ASIC) extended the Unfair Contract Terms (UCT) Bill to encompass consumer and small business unfair contract term protections to the insurance industry.

Following these reviews, we will be implementing changes to SUU products, for both New Business and Renewals. The purpose of this communication is to clarify our position on the following topics:

1. Communicable Diseases – We are amending all products to exclude Communicable Disease.
2. Silent Cyber – We are amending all products to include a Cyber exclusion.
3. Minimum Premium – We are amending all products to include a Minimum Premium disclosure.
4. Unfair Contract Terms – We are amending terms to align with the UCT legislation.


When is this happening?

We are implementing these policy updates effective from 30 April 2021.


Where can I view more details of this change?

The Silent Cyber & Communicable Diseases amendments will cover all SUU products in line with Reinsurance Treaty expectations. UCT amendments will also cover all SUU products. These changes will automatically be applied to Quotes, New Business and Renewals with effective dates from 30 April 2021 onwards.

They will be issued as an updated Product Disclosure Statement (PDS).

As with all product documentation you should review this new PDS carefully to understand the changes.


1. Communicable Diseases

This is a general exclusion which applies to all SUU products but does not apply to Section 4 – Liability and Section 6 – Office Bearer’s Liability of our Residential Strata and Commercial Strata Products or Section 5 – Broadform Liability of our Commercial Landlord product.

This exclusion encompasses not only pandemic losses but also excludes transmissible diseases including viruses, bacteria, parasites, and other organisms.

This is being made as a general exclusion to reflect our Reinsurance Treaty & for clarity that the only cover for infectious disease is under the specific Infectious or Contagious Disease, Murder and/or Suicide Additional Benefit under our Residential Strata and Commercial Strata products, or the Murder, Suicide or Disease Additional Benefit under our Commercial Landlords product.

The exclusion includes a write back for physical damage to insured property caused by certain specified events (i.e. we still provide storm cover even if the premises is closed due to an outbreak of a Communicable Disease on site).

As part of implementation of the Communicable Diseases exclusion we have amended our Infectious Diseases extensions within our policies to operate with this exclusion & reflect overall policy intent. There is a reduction in cover previously provided with key points being:
• The only diseases we provide cover for are influenza (but not Highly Pathogenic Avian Influenza or influenza that has pandemic potential), gastroenteritis/norovirus/rotavirus or legionnaires disease
• The overall closure by public authority extension will be subject to a maximum limit of $250,000 (or the lesser of $250,000 or 30 days under some policies)
• A 48-hour time excess will be standard across the clause
• We will not be liable for associated clean-up costs.

The definition of Your Situation impacted (Residential Strata/Commercial Strata) and Insured Premises impacted (Commercial Landlords) by closure following an outbreak of a covered disease is tightened to the insured situation directly owned, leased or controlled by the insured only & there is no radius extension.

Addition of a Pandemic Exclusion on our Casualty Classes – this excludes any cover for liability as a result of a listed human disease under the Biosecurity Act or a public health emergency declared by the WHO or a pandemic or epidemic declared by the WHO or Australian Government. This aligns to our liability treaty renewal. This exclusion will apply to Section 4 – Liability and Section 6 – Office Bearer’s Liability of our Residential Strata and Commercial Strata Products and Section 5 – Broadform Liability of our Commercial Landlord product.


2. Silent Cyber

To meet our Reinsurance Treaty expectations, we are taking steps to exclude loss due to a cyber-attack and we are updating our products to provide our intent of cover.


3. Minimum Premium

A disclosure on Minimum Premiums will now be added to ensure greater transparency on the minimum premiums we collect under certain policy sections and conditions. Any discounts will be applied to the policy, only to the extent any minimum premium is not reached. This means that any discount that you may be eligible for may be reduced.


4. Unfair Contract Terms

SUU has been analysing our policy wordings, identifying terms that may be deemed unfair and working hard to update our wordings to align with the UCT legislation.

SUU recognises that community expectations of the insurance industry continue to evolve and we always strive to meet those expectations.

The changes being implemented are not aimed at changing the level or type of cover that our customers currently receive. We are making changes to the language used in our PDS’ to make them clearer, more customer focused and to better reflect our current processes.

If you have further questions, please connect with your SUU representative or email us at info@suu.com.au.

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