Can your insurance weather the storm?

The start of 2021 saw plagues of extreme weather descend on Australia, with destructive hail, dust storms and flooding. The summer before that was marked by bushfires which began earlier than usual, while 2022 has begun with severe rain, floods and cyclones.

Extreme weather events are becoming more and more prevalent in Australia and one thing we can count on is that our weather conditions are anything but predictable. As a result, it pays to review your insurance coverage regularly and consider the following questions to make sure you are sufficiently insured for the consequences of wild weather.

Could my business be at risk?

Is your business in an area that carries a risk of severe weather events, such as flooding, bushfires, cyclones, storms, droughts, earthquakes or even tsunamis?

Are there plans, for example for new infrastructure or other developments locally, that might change the risk in the short or mid-term? With weather patterns also changing it’s always good to realistically self-assess your risks and then speak to a qualified Insurance Adviser about coverage and exclusions.

Consider potential risks?

How might extreme weather damage your business? For example, flooding may cause water damage, damage to electrical appliances, stock damage, injuries to you or your workers, loss of profits and liability for ongoing expenses.

You also need to consider the steps to take to recover your business, and what this recovery would cost. It could be replacement of new equipment or a shop fit-out, to data recovery, finding new business partners and more.

Always have a business continuity plan in place to prepare for an emergency and help mitigate loss or damage. Being prepared before disaster strikes can greatly assist your business to recover following the event.

Choosing the right cover

Your insurance policy type and its coverage will make a big difference to how quickly your business can recover after extreme weather.

You should ensure you are well covered to protect against all eventualities. In addition to the financial cost, you should consider additional assistance such as ‘make safe’ repairs and access to trades which will be vital to a smoother recovery.

Talk to a qualified Insurance Adviser for insight on local conditions and risks, and how they can to tailor your cover so it meets your needs from a cost/risk calculation. Don’t forget to consider issues post weather event such as removal of debris which can incur significant costs.

Be prepared and informed

Understand the fine print – a professional insurance adviser will outline exactly what you will be covered for should disaster strike. For example, storm damage may be covered, but flood damage may not.

In case disaster strikes, know where your insurance documents are located, preferably have important copies stored safely in the cloud and backed up. Keep copies of any important paper documents off-site so if you lose everything in a flood or fire, you can still access the information.

How can Resilium help?

Insurance isn’t one size fits all. Our qualified Insurance Advisers will look at your situation, assess your risks and provide you with insurance solutions designed specifically to suit your particular circumstances. Resilium Advisers are located all across Australia and our ‘Find an Adviser’ tool makes it easy for you to find one closest to you.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Resilium directly.