In the event of a major disaster, around 40 per cent of businesses are unable to reopen, according to research from the United States’ Federal Emergency Management Agency. Will your business be one of them? Catastrophic events can take a variety of forms, including one of Australia’s biggest natural threats, flooding.These disasters can strike at any time, so it’s vital to be prepared for them and have a plan for recovery, as well as comprehensive business insurance to fall back on.

Karen Mills, administrator for Small Business Administration, says that this can be a weakness for a lot of companies, which are complacent about the risk of a major disaster occurring.

“There is a tendency to think that a large-scale disaster is not going to happen ‘where I live,'” she said. “The reality is that storms, floods, earthquakes, fires and man-made disasters can strike anytime and anywhere. Planning ahead for your own post-disaster recovery is a good step toward protecting your family, your business and your community.”

So what can you do to help your business recover after a destructive event?

A broker can make the process of making a claim easier and less stressful in the event of a disaster.

Events such as flooding can be a big set back for businesses.
Events such as flooding can be a big set back for businesses.
1. Assess the situation

When a disaster occurs, it can be tempting to go into full blown panic mode, assuming the worst and wondering how your business will come back from this. It’s important that you take the time to get your facts straight and form an idea of the extent of the damage. This will inform your subsequent actions, arming you with information that will help you ascertain how to approach the situation going forward.

2. Maintain clear communication

Safety and security solutions provider Chubb says that it’s necessary for businesses leaders to communicate openly with their staff following a disaster, as the constant stream of information from televisions, social media and other channels can skew the truth and exaggerate the problem. Ensure everyone is informed about the situation, and make it clear that you are taking steps to manage the effects.

3. Immediately make a claim on your insurance

Arguably the most essential step in disaster recovery is to make an insurance claim immediately after the event to get help as soon as possible. When you work with an insurance broker this process is made easier and less stressful, as you can contact them directly and leave the matter in their capable hands. Whether it involves crop insurance or business interruption cover, a broker will act quickly and liaise with the insurance provider to get a business back on its feet.

Need to make a claim, or unsure whether you’re protected against disasters? Contact MGA today.