The climate can have a significant impact on local businesses, particularly when extreme weather events occur. Recent reports have shown that La Nina may be on the horizon for Australia, and it’s vital for organisations in a variety of sectors to prepare for the flooding that could come from the wetter weather.

One of the most important ways for Australian companies to get ready for La Nina is to get cover for their assets from the right business insurance package. This can ensure they are protected from the financial implications of extreme conditions.

Current weather patterns suggest there will be above-average rainfall in the coming months.

 

Insurance can protect you from the financial implications of extreme weather.

Negative Indian Ocean Dipole looming

According to information from the Bureau of Meteorology, current Indian Ocean Dipole (IOD) index values are showing a pattern toward a negative IOD for Australia in the next few months. The IOD is determined by winds and sea surface-temperatures, and tends to coincide with El Nino and La Nina weather patterns.

The negative IOD that predicts arrival of La Nina may mean that Australia experiences above-average rainfalls for the season. Data from The Bureau of Meteorology shows that there is an 80 per cent chance that New South Wales will see higher than median rainfall between July and September. South Australia and parts of Queensland and Western Australia also have a reasonably high chance.

University of Melbourne climate scientist Andrew King says that weather pattern could have mixed outcomes.

“In general a lot of Australia has been in drought recently and if they get more rainfall that’s really beneficial for farmers and also good for filling up reservoirs. But you never have everything positive,” he told News Corp Australia. “And if there are heavy rainfall events there could also be flooding.”

How can businesses prepare?

The Bureau anticipates that the negative IOD will not be as severe as the one that occurred in 2010. Nevertheless, if flooding does happen, it could have a detrimental impact on businesses in affected regions. The 2010 flooding had a significant economic impact, and companies and governments will be keen to prevent this from happening again.

Consequently, organisations need to take advantage of the forewarning and use the time to prepare properly. Whether you require crop insurance, loss of profits cover, business insurance or cover for your truck, the right insurance policy can help to protect you from the financial fallout of insurable damage to your assets.

This way, you can rest easy knowing that your business can bounce back and continue to operate, whatever the weather.