A Challenging Spring and Summer Ahead
Australia’s spring and summer are expected to bring an increase in extreme weather events, with the Bureau of Meteorology forecasting heatwaves, bushfires, storms, and a heightened risk of floods in Tasmania and bushfires in Victoria and South Australia. The National Emergency Management Agency has been refining its strategies, especially as the October to April period is already high-risk for severe weather.
These extreme conditions aren’t just inconvenient—they pose serious risks to businesses, impacting operations and long-term viability.
Will Your Business ‘Weather’ the Seasons?
Extreme weather can disrupt supply chains, with agriculture, retail, and logistics most at risk. Transport delays, power outages, and unsafe workplaces could lead to costly disruptions, delays, or shutdowns.
Planning & Risk Minimisation
Prepare for extreme weather with a solid business continuity plan (BCP). Identify critical operations like customer service and logistics, and ensure your systems support remote work if needed. Backup power is essential during blackouts. Check your infrastructure securing buildings, addressing fire hazards and preparing drainage for heavy rains. Invest in staff safety training for floods, fires, and other emergencies. Stay informed through your state’s emergency warning app to track extreme weather events.
Insurance as a Key Risk Management Tool
Customised insurance coverage is a vital part of your risk management strategy. From business interruption to specific disaster coverage like flood or fire insurance, the right policies can reduce the financial impact of weather disruptions.
As your broker, we can help review and update your policies to ensure they meet your current needs. If you’ve expanded operations or purchased new equipment, now is the time to adjust your coverage—waiting until after a disaster could leave you underinsured.
Supply Chain Resilience
Diversifying suppliers and having contingency plans in place can help your business stay resilient during a crisis. Relying on just one or two suppliers can leave you vulnerable if a natural disaster strikes.
Strengthen your supply chain by building relationships with a broader network of suppliers and discussing emergency plans with logistics partners in advance. Key questions to ask include:
- Have you assessed risks in your supply chain related to extreme weather?
- Do you have alternative suppliers to minimize disruptions?
- How will you transport goods if roads are closed or transport is disrupted?
- Do you have business interruption insurance to cover lost income during disruptions?
- Are your cybersecurity measures and insurance in place to protect data in case of a cyberattack during or after a disaster?
By being proactive, you can ensure your business is prepared for whatever the weather throws at you this spring and summer. By working closely with us as your insurance broker or adviser, your business can develop tailored risk management plans to safeguard operations and financial stability.
If you want to learn more about getting your business ready for severe weather events CLICK HERE, or contact us today for a discussion.