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How to plan for business disruptions due to weather event

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.

Storm planning tips for small-to-medium businesses

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.

Need help?

If you have any questions about the content covered in this article or the risks and insurance coverage requirements for your business, reach out to your Marsh risk advisor today or contact us.

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This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. 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.