Australians are familiar with the devastating impacts of extreme weather; floods, storms and fires are now more frequent and damaging than ever before. With La Nina predicted to continue for the near future, and ongoing subsequent weather events like rainfall and cyclone risk are more likely to occur.
Businesses that are better prepared for the potential impact of extreme weather are more able to quickly respond to such an event, process their claim and get back to business with less disruption.
Marsh recently identified several areas where planning can assist in reducing the impact on your business.
Think about the ways in which your business could be impacted by an extreme weather event and start to prepare for what your business may need.
Review your stock inventory, and consider supply chain interruption should your local area or supplier be impacted.
Build a plan around how you will contact your staff, including the local emergency services, and what you will direct them to do in an evacuation or stay-at-home mandate.
Take steps to protect your stock and inventory where possible, consider storage locations, such as floor stock, and anything that can be compromised by rising water.
If you need to work offsite or at another location during an interruption, consider possible sites and alternatives ahead of time.
During an event, consider if you need to support the local charity shelter or allow time or support for employees to assist their loved ones.
Consider a plan around return to work, shift work or working from home, where possible.
Consistent communication of response efforts to your employees and other key stakeholders is critical. Regularly update employees on when you plan to reopen sites, consider returning in prioritised shifts, and facilitate two-way communication to determine when your people can return to work.
Keep in mind that power and internet outages could affect employees working remotely.
Understand the claims process and what you’ll need to supply in the event of a claim, such as evidence (photos), contact details for your broker etc.
Consider your business interruption policy and your last renewal. Have you got the correct coverage for your business with the right declared values of your property?
By taking these steps you can better position your business to limit the effects of a storm and more quickly resume normal operations.
If you’d like to hear more tips about minimising your risk or would like to review your insurance policy limitations and coverage, we recommend you contact a Marsh broker today to assist you with arranging the right business interruption cover.
Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“Marsh”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.
LCPA 22/499