New Insurance Code Draft Puts Claims Handling in Focus

The headline reform is that key insurer commitments under the code are intended to become legally enforceable in consumer insurance contracts, subject to ASIC approval. The draft also proposes stronger support for vulnerable customers, broader family violence protections, trauma-informed claims handling and clearer expectations around expert reports. Home and motor claims left undecided after 12 months would be automatically accepted, subject to defined exceptions.

For personal trainers, the immediate message is not that public liability or professional indemnity policy wording has changed overnight. The current code remains in force while the review continues, and the automatic acceptance measure is aimed at home and motor claims rather than fitness liability claims. Even so, the direction of travel matters. Fitness businesses often hold several forms of general insurance, from equipment and contents cover to public liability, professional indemnity, business interruption or commercial motor policies. Any shift toward clearer service standards can influence how insurers communicate, request evidence and manage disputes.

There are three practical takeaways for trainers:

• Do not assume a claim will be straightforward simply because a policy is in place. Keep client notes, incident reports, waivers, qualifications and maintenance records organised.
• Review how your policy deals with claim notification, exclusions, subcontractors, outdoor sessions, online coaching and group training.
• If you have had a difficult claims experience, the consultation window gives business owners a chance to share practical feedback before the revised code is submitted for approval.

The code review also reinforces why insurance should be treated as an active business tool, not a once-a-year admin task. A trainer who has expanded from one-on-one sessions into boot camps, nutrition guidance, online programming or rented studio space may have exposures that were not present when cover was first arranged. If you are reviewing suitable cover, the policy wording, claims process and insurer service standards all deserve attention alongside the premium.

For a sector built on trust, safety and professional judgement, claims handling standards matter. When a client injury, property damage allegation or business interruption event occurs, the difference between a clear process and a drawn-out dispute can be significant. Trainers should stay close to industry updates as the consultation progresses, then use the final code as another prompt to review whether their insurance arrangements still match the way they actually train clients.