Summer brings longer days, hotter weather and, across much of Australia, the start of bushfire season. Businesses don't have to be on the edge of the bush to be affected. Smoke, road closures, power outages and evacuation orders can close a business for days, even when the flames never reach the property.
Here's how to get your business ready, and how to make sure your insurance is working for you before the season really starts.
How bushfires affect businesses
Fire damage to buildings, stock and equipment is the obvious risk, but it isn't the only one. Businesses can also be hit by:
Smoke and ash damage. Smoke can get into stock, fit-out, air conditioning systems and electronics, even some distance from the fire.
Loss of access. Authorities may close roads or areas, so customers, staff and deliveries can't reach you.
Power and utility outages. Fires can damage power lines and infrastructure, leading to spoiled stock and stopped production.
Supply chain problems. A fire affecting a supplier or a key customer can hurt your business, even if your own premises are untouched.
Damage to vehicles, plant and equipment kept on site or out on jobs.
Check your insurance before the season starts
Many insurers place restrictions on new policies or increases in cover once a fire is burning nearby, so it's worth reviewing your cover early. Things to look at include:
1. Sums insured
Make sure your building, contents, stock and equipment figures reflect what it would cost to replace them today, including demolition and debris removal. Underinsurance can reduce what you're paid at claim time.
2. Business interruption cover
Business interruption cover is designed to replace lost gross profit and pay extra costs while you recover from insured damage. Check that your indemnity period is long enough. Rebuilding after a major fire can take a long time, particularly when many properties in an area are affected at once.
3. Prevention of access and utilities extensions
Some policies include extensions for loss caused by authorities stopping access to your premises, or by damage to the supply of power, gas or water. These extensions usually have their own limits, conditions and waiting periods, so check what applies under your policy.
4. Customers and suppliers
If you rely heavily on one supplier or customer, ask whether your business interruption cover can include loss from damage at their premises.
5. Property away from your premises
Tools, equipment and stock kept in vehicles, at job sites or in storage may need specific cover, such as a portable equipment or general property section.
6. Vehicles and mobile plant
Check that your commercial motor, contractors plant or farm machinery policies cover fire damage and reflect current market values.
Practical steps to protect your business
Know your fire risk. Check your state or territory fire authority's advice and warnings, and know the fire danger ratings for your area.
Make a bushfire plan for your business. Decide who makes decisions, when you'll close, how you'll contact staff and customers, and where you'll go.
Clean up around your premises. Clear gutters, remove dry vegetation and rubbish, and store flammable materials safely.
Back up your records. Keep copies of important files, client data and accounts in the cloud or off site.
Keep an asset register and photos. Up-to-date photos and a list of equipment and stock make a claim much easier.
Keep your policy details handy. Save your policy numbers and our contact details somewhere you can reach if you have to leave in a hurry.
If your business is affected
Your safety and your team's safety come first. Once it's safe, contact us as soon as you can. Take photos of any damage, keep receipts for emergency repairs and extra costs, and don't throw away damaged items until the insurer says it's okay. Our claims page has more on how the process works.
How we help
We've been broking since 2005, and we work with businesses Australia-wide by phone and email. We can review your sums insured, business interruption cover and policy extensions before the fire season gets underway, explain how your policy responds to bushfire, and help you through a claim if the worst happens.
Review your cover
If you'd like us to check your cover ahead of summer, call us on (03) 9078 6473, email info@mminsure.com.au or contact us to arrange a review.
