How to Minimise the Risk of Bushfires
2018 was Australia’s third warmest year in 109 years of national records (and didn’t we feel it). This - coupled with the fact that the total rainfall for the year was 11 per cent below average - means that 2019 has already been predicted to be one of the worst bushfire seasons on record.
With total insurance losses topping USD55 million last year from extreme summer conditions, the impact of bushfires is clearly extensive. Much more worryingly, a CSIRO study found that from 1901 to 2011, 825 people died in bushfires in Australia and more than 11,000 homes were destroyed. And the more developed that Australian society has become, the more destructive the impact of the fires has been.
Therefore, as the mercury continues to rise, it is imperative that organisations are both prepared for and covered in the case of bushfires.
Impact on your business
Bushfires can cause damage to your property and contents, or destroy them completely. If your business is nearby to a spreading fire, you may need to leave the premises and seek shelter elsewhere, which can cause interruption to your business. When your business stops running, this often results in lost revenue to the business or a loss of customers to competitors.
During severe weather, staff may have difficulty returning to work (whether it is to attend to their own properties or families, or through limited access to transport), pre-arranged offsite centres may face excess demand, and tradespeople will likely be at a premium. Even with agreed fixed prices and service level agreements, in a time of disaster, essential services become hot property, and so access to them can become a challenge. Claims may also take longer than anticipated to be paid, thanks to pressure and demand on the insurers.
What organisations should do to prepare
It’s important to come up with a plan to ensure your business can survive a bushfire. You should find out if you are in a bushfire prone area, make sure you protect yourself and your employees, and put measures in place to protect your assets, including insurance, assets valuations and business continuity plans.
How Aon can help
Aon can help you identify your severe weather risks and come up with a plan to manage and reduce them. We provide a full suite of end to end solutions that can help you before, during and after a weather event.
We can help you:
- Identify risks and reduce the frequency and impact of a loss
- Accurately quantify your risks
- Ensure your tangible assets are valued correctly
- Find the appropriate insurance cover for your property and business interruption
- Devise a business continuity plan to ensure you can get your business running and generating revenue as quickly as possible.
For more information on how Aon can help your organisation to manage severe weather risk, please contact us.