Is your business ready for the effects of La Nina?
This time last year, plumes of dark smoke covered Australia with bushfires sweeping across New South Wales, Victoria, South Australia, and Queensland. The Black Summer resulted in more than $2.32 billion in insurance payouts, with small and medium-sized businesses among the hardest hit. This was further amplified by subsequent floods and hailstorms, leading to the catastrophe insurance bill surpassing $6 billion.
A report by The Australian Small Business and Family Enterprise Ombudsman's sent shockwaves when it said that an alarming number of affected businesses were either under-insured or had no insurance at all.
While this year has so far been relatively tame in comparison, climate scientists have warned that natural disasters still pose a threat for Australian small businesses, including the flood-inducing La Nina climate pattern, which is likely to impact Queensland and the rest of eastern Australia.
La Nina caused significant damage when it last made its way to Australia in 2010-12 season. And while the 2020-21 version of La Nina has likely reached its peak, the Bureau of Meteorology says the impacts associated with the weather pattern, such as excessive rainfall, are expected to persist across eastern and northern parts of the country through to the end of summer and into autumn.
When it comes to potentially damaging natural disasters, business owners should seek advice on how best to manage risks and take practical steps to prepare. This can help to avoid financial ruin in the case of a damaging weather event, like a flood or cyclone. This starts with ensuring your business is equipped with a strong risk management plan, which factors in the need for adequate insurance that is tailored to your needs.
There is no question that businesses have heard time and again about the importance of preparing when disaster strikes. But many still prefer to take a chance - a choice that can leave them far worse off when the unexpected comes to pass.
If your business is yet to draw up a protection plan in preparation for extreme weather events, it's never too late to get started. For those who already have an existing plan in place, there is no harm in regularly reviewing and updating it to better reflect your current needs and the ever-changing landscape.
How Coverforce can help
Even as we farewell summer, the weather dangers associated with the season are likely to linger around for longer. So don't wait until a catastrophe occurs to find out you don't have the cover you need in place to properly protect your business.
If you haven't already, get in touch with our insurance brokers today for tailored risk advice and the right insurance program to protect your business and assets.
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 Coverforce directly.
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