Insurance for Natural Disasters: 5 Reasons You Need It Today

Although controlling the weather is beyond our control, small businesses can still take proactive measures to prepare themselves for natural disasters.

Recent research shows that the threat of bushfires is rising throughout Australia, notably in coastal Western Australia, central Queensland, and extensive regions in New South Wales, the Australian Capital Territory, and Victoria.

Additionally, the recent La Niña weather phenomenon that plagued our communities proves you can’t be complacent about the possibility of cyclones and floods.

Business insurance is a great way to protect your assets and ensure a fighting chance of recovery after tragedy strikes – especially in Australia’s harsh and unpredictable climate. In this blog, we’ll break down the top 5 reasons why you should invest in business insurance today.

Property & building recovery
Business interruption coverage
Liability protection
Goods in transit protection
Peace of mind

1. Property & building recovery

Imagine a furious storm or wild bushfire engulfing your business premises. The aftermath could leave your property (owned or tenanted), equipment, inventory, and furniture in ruins, costing you thousands of hard-earned dollars, and possibly even your entire business.

As a business owner, it’s crucial you fully understand the potential rebuilding expenses of your property, including debris removal costs. Based on data from IAG during the 2019/2020 fire season, the average debris removal cost after a fire for residential properties is $46,000. However, this figure rises to $68,000 for properties needing asbestos removal. Confirming these values will increase your chance at post-disaster revival.

Business insurance can help cover the cost of repairing or replacing your tangible assets and property damaged or destroyed by natural disasters. Without insurance, your business could struggle to resurface, held down by a devastating financial burden, not to mention the trauma of such a tragedy.

2. Business interruption coverage

When natural disasters occur, your business may come to a grinding halt, throwing your operations into disarray. This downtime can continue longer than you can handle, causing a devastating loss of income.
Business interruption coverage can help keep the lights on by covering lost income and handling ongoing expenses, such as rent and payroll, that won’t wait for a disaster to pass. Plus, it can provide a financial lifeline if you need to temporarily relocate or find a new forever home for your business.

3. Liability protection during natural disasters

Even after the dust settles after a natural disaster, another storm could be brewing – liability claims. Customers, employees, or even third parties might seek compensation for injuries or property damage incurred on your premises during the chaos. These claims don’t only take a hit to your finances but also your reputation, potentially harming future business.

A comprehensive business insurance policy can help cover the legal fees associated with settlements or judgments. With the right plan in place, your legacy can weather the legal storm and emerge unscathed, ready to work another day.

4. Goods in transit protection

For businesses moving goods, safeguarding your precious cargo is critical. When natural disasters strike, they certainly don’t discriminate, wreaking havoc on your valuable inventory during transit. Business insurance can ensure that damaged or lost goods are covered and replaced, whether due to flooded roads, hailstorms or fire.

This policy is especially paramount if your business depends on a steady inventory flow to keep things running smoothly. A tailored insurance policy can help shield your products and equipment from Australia’s temperamental climate, keeping your operations on track and your cash flow positive.

5. Peace of mind

When it comes to running a business, peace of mind really is priceless. Knowing your business is adequately insured against natural disasters grants you the freedom to channel your energy into what truly matters – serving your customers and growing your enterprise. Instead of stressing over the financial fallout that unforeseen catastrophes can bring, you can focus on navigating your industry’s daily challenges and opportunities, protecting your legacy for years to come.

Stay one step ahead of natural disasters with Knightsbridge

Knightsbridge understands the many obstacles that small businesses face every day. Our highly experienced brokers can offer the industry expertise and financial protection your company deserves. With comprehensive coverage tailored to your unique needs, you can rest easy knowing you’re prepared to face unforeseen challenges head-on.

Let us be your knight in shining armour. Reach out to our friendly team to get a quote for your business insurance today.