Severe weather events can often have an adverse affect on businesses, causing operations to be shutdown, supplies to be damaged or even employees injured.

A new report from the Australian Bureau of Meteorology (BOM) has found that changing weather patterns in the Pacific have lowered the strength of a possible El Niño event in 2014.

Warming of the Pacific Ocean had previously set Australia up for such an event, but a so-called “lack of atmospheric response” has resulted in ocean cooling.

An El Niño event is associated with warmer than average sea surface temperatures, causing below average rainfall in eastern Australia. As such, businesses throughout the region can be left with substantial damages.

Changes in the Indian Ocean can also have an effect on Australia, with what’s called a negative Indian Ocean Dipole threshold bringing wetter winter weather and spring conditions to inland and southern Australia.

“Conditions in the Indian Ocean may have contributed to the above-average rainfall experienced in southeast Australia during June,” a release from the BOM stated.

Weather events are able to cause significant business disruption, requiring an appropriate level of business interruption insurance to be in place. Their relatively unpredictable nature means businesses should always be prepared.

“While the majority of climate models suggest El Niño remains likely for the spring of 2014, most have eased their predicted strength. If an El Niño were to occur, it is increasingly unlikely to be a strong event,” the release explained.

If you’d like to discuss an adequate level of insurance cover for your business, get in touch with the helpful team at MGA Insurance Brokers today.