Summer in Australia brings with it a whole range of weather-related risks. Bushfires, severe storms, cyclones and floods are unfortunately all part of living in this beautiful country. The Australian Actuaries Climate Index (AACI) indicates that weather which we would have previously considered to be extreme is now actually considered ‘normal’ relative to recent years. Disaster preparedness is essential for businesses operating in Australia to minimise the financial impacts and get you back up and running as quickly as possible.
In terms of the current levels of risk, the Bureau of Meteorology has predicted above average rainfall for eastern and central Australia and the National Council for Fire And Emergency Services (AFAC) has said that the Seasonal Bushfire Outlook shows increased risk of fire for large areas in NT and Queensland, as well as far west and southwestern Victoria, and the southeast corner of SA.
Being aware of the risk in your area is the first step to helping you plan effectively. The effects of extreme weather can be devastating for small businesses that have their operations disrupted or their assets damaged or destroyed but there are things you can do now to prepare your home and your business.
Prepare A Business Contingency Plan For Natural Disasters
Make sure your business is ready to deal with extreme weather or a natural disaster by preparing a business contingency plan. This will help minimise the financial impact and ensure business continuity, helping you get back up and running as quickly as possible.
Develop A Comprehensive Emergency Plan
Create a detailed emergency plan tailored to the threat of bushfires and floods. This plan should outline evacuation procedures, communication protocols, designated assembly points and responsibilities for each employee during an emergency.
Make Sure Your Insurance Cover Is Up To Date
Review your current business insurance policies to ensure they provide adequate coverage for potential damages caused by weather events. Speak with an AIB insurance broker, who can discuss your options and the best cover for your specific business needs.
Create Off-Site Data Backup And Storage
Protect crucial business data and documents by regularly backing them up and storing them off-site or on secure cloud-based platforms. This will minimise the risk of data loss during extreme weather events.
Train Staff To Respond To Emergency Situations
Hold regular training sessions to educate employees about the emergency plan and the steps they should take during bushfires or floods.
Maintain Landscaping And Clear Surroundings
Regularly maintain any garden around your business premises, trim trees and remove dry foliage. Similarly, ensure proper drainage to prevent flooding.
Check Your Communication Channels
Make sure you have access to multiple communication channels to stay up to date on weather and evacuation orders. Use social media, emergency alert systems and reliable news sources so you know what’s happening, as it happens.
Develop A Business Continuity Plan
Create a business continuity plan that outlines the steps to follow to resume operations after a disaster. This plan should address immediate recovery needs, temporary business relocation and any potential supply chain disruptions.
Do Regular Drills
Organise periodic drills to test the effectiveness of your emergency plan. Identify areas for improvement and make necessary adjustments based on the outcomes of these exercises.
Dealing With A Natural Disaster
If your business is unfortunate to be impacted by a natural disaster, here’s a guide on what to do to help with your recovery.
- Ensure everyone is safe. Depending on the circumstances, that could mean evacuating your premises or hunkering down until the danger has passed.
- Contact emergency services. If you or your team are in a life-threatening situation, calling 000 will put you in contact with the police, fire and rescue and ambulance services in your area.
- Assess the damage. As soon as it’s safe to do so, conduct a preliminary assessment of the damage. Take photos and detailed notes – they’ll be useful later if you decide to lodge an insurance claim.
- Notify your insurance company. The sooner you’re able to commence the claims process, the faster your business should be able to recover. You’ll be asked to provide evidence of your losses and may need to meet with an assessor who’ll inspect the damage where it is.
- Enact your disaster recovery plan. If you’ve adopted sound risk management practices, you’ll already have a recovery plan which details how your business will respond to a range of climate related risks. If not, you’ll need to develop one, to get your business stabilised. It should cover the short-term actions you need to take, such as relocating to alternative premises or shifting your activities online, and your longer-term rebuilding strategy.
- Investigate government assistance. Both federal and state governments offer a range of assistance measures, including concessional loans or grants, to help small businesses get back on their feet after a natural disaster is declared. The Department of Home Affairs’ Disaster Assist service can provide more information about disaster recovery payments. Meanwhile, the Government’s Business website offers advice to help small businesses recover.
- Talk to your insurance broker. Navigating the insurance process in the wake of a natural disaster can be time consuming and stressful. Your insurance broker is there to help you carry the load. Enlisting their assistance to liaise with your insurer can help you achieve a satisfactory settlement sooner and free you up to focus on getting your operations back on track.
- Plan for the future. Once you’re up and running again, you’ll need to update your business continuity plan to include the lessons you’ve learnt from the experience. You may also wish to invest in risk mitigation measures, such as flood proofing your premises or acquiring technology that enables your team to work remotely.
Cover to help your business recover
Insurance is there to help your business recover from adverse events, including damage and disruption caused by natural disasters. Having the right level of cover means you won’t be significantly out of pocket, in the event of a claim.
An AIB insurance broker can provide expert advice and ensure you get the right cover for your business needs. Experienced brokers have strong relationships with various insurers and can help businesses get the right cover at the right price. Their advice means you don’t have to guess what will work with you and hope for the best.
Brokers can also help review a business’ existing policies and procedures and suggest ways to potentially reduce your insurance costs. This could include adjusting a business’ claims excess or suggesting ways to reduce risk, which insurers can look at more favourably.
If you have to make a claim, brokers can also help you with the claims process, which can be difficult to navigate. This help is especially important following a major disaster when insurers are inundated with claims and outcomes may take longer.
A disaster can be one of the most stressful events you go through as a business owner and a good broker can help ease that.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
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