Australia is often at the mercy of nature. With much of our coastline exposed to the sea, storms and flooding are an annual threat to business continuity and can test a company’s business insurance policy.

Meteorologists have predicted that the next years will see a drop in the number of tropical storms hitting Australian shores. However, it’s not time to relax just yet; the experts also claim at least one cyclone is set to hit the nation in the coming months.

The Bureau of Meteorology (BoM) used climate modelling to find that El Niño conditions are likely to subside and cause a lesser cyclone risk across the country this summer.

However, BoM Queensland Regional Director Rob Webb suggested that businesses should not drop their guard just yet, as storm season officially begins this week.

“Each summer brings increased risk associated with severe weather,” he explained in an October 22 report by Insurance & Risk Professional.

“With warmer temperatures and increased moisture, there is more energy in the atmosphere and this fuels tropical cyclones, severe thunderstorms, heavy rain and a greater likelihood of flooding.”

Protecting a business from adverse weather

With weather infamously difficult to predict, business interruption insurance is a necessity for many organisations when creating a plan for disasters.

Businesses will need to mitigate for damage by protecting themselves with adequate cover, although insurance brokers are in a great position to help.

CEO at NIBA Dallas Booth said it is up to brokers to guide their clients to the right level of business insurance protection as storm season approaches.

“We’ve seen enough examples in recent years of the damage that can be caused by cyclones and storms in a very short amount of time, such as the Bundaberg floods of 2013,” he explained.

“Even if the risk of flooding and cyclone is slightly reduced this year, there is still the potential for communities to be devastated by storm events and that’s why it is imperative people make sure their insurance arrangements are all in order.”