Here in Australia, we’re lucky to live in a country where the sun is often shining and the days are often long and hot – it’s a big part of the reason why much of the world looks upon us with envy.
However, despite this reputation, history has shown that many parts of Australia are vulnerable to heavy flooding. One need only think back to the deadly Queensland floods of 2010/2011 to gain a better grasp of just how dangerous this natural disaster can be.
For this reason, it’s important for all Australian businesses to take the time to think about how they might be able to mitigate the danger that flooding might pose.
How can flooding affect my business?
The Queensland floods of December 2010 and January 2011 caused an estimated $2.38 billion worth of damage to the state, and while government grants were made available to those badly affected, many small businesses were left out of pocket.
Furthermore, many SMEs whose assets were not directly damaged by the flooding were impacted as well, due to productivity loss and business interruption resulting from damage to essential infrastructure.
Just because your small business might be out of the direct path of flooding – such as on the upper level of a high rise building – does not mean you are immune from the potential expenses that flooding can cause.
Flooding can also lead to business losses due to damage caused to the premises and assets of your customers and suppliers, so this is an important factor to consider as well.
How can I protect myself?
It’s important to realise that many small business insurance policies do not necessarily provide flood insurance as part of standard coverage. There can also be variations in the ways various insurers define flooding.
For this reason, you will want to make sure that you talk to a professional insurance broker about flood insurance when deciding on your small business coverage, so that you can ensure your business is protected against whatever tomorrow might bring.