What are the key risks posed by flooding?

Flooding can have a devastating impact on your small business, causing damage to your premises, fittings and fixtures, plant and equipment and stock and disrupting your ability to trade. Even businesses outside of the flood zones can feel the impact of flooding, with supply chain disruption affecting their ability to access goods and demand surge increasing the difficulty of accessing some services.

Who should consider insurance?

While you can’t control the weather, insurance can help to protect small businesses across Australia from the risks posed by flooding to both their premises and trading. Any business located on a creek, lake or river should consider adding a flood insurance extension to their property policy.

Did you know?

2.8%

About 2.8% of Australian properties have moderate to extreme risks of flooding, while about 7% have some flood risk.

Flood Insurance, Understand Insurance, Insurance Council of Australia.

$1m

Of those businesses that were either fully or partially inundated by flood water during Queensland’s 2011 floods, 17% said the total cost of the damage they experience was more than $1 million.

Impact of the Queensland floods on business, Chamber of Commerce and Industry Queensland, February 2011.

Floods in Australia are expected to become more frequent and intense.

Royal Commission into National Natural Disaster Arrangements Report, October 2020.

What insurance should you take out – and what can it cover?

Insurance can protect you and your employees onsite, on the way to work and in your office

Type of coverPotential benefits
Business packHelps safeguard your business premises and contents against:

  • damage caused by fire, storm or accidental damage
  • equipment or machinery breakdown
  • employee dishonesty
  • glass damage
  • legal issues, such as with public and products liability
  • tax audits
  • theft, and theft or loss of money
  • business interruption, which provides cover for financial loss as a result of an
    interruption to your business caused by an insured event.
Motor insuranceTakes care of your valuable business vehicles, with cover to help:

  • replace or repair a vehicle damaged by fire
  • help if you or your staff damage another person’s vehicle
  • repair your vehicle after an accident or replace it if it’s written off
  • replace a lost or stolen vehicle
  • safeguard you against legal liability.
Workers CompensationCan cover the cost of your employees’ wages, rehabilitation and medication if they
become sick or injured through their work.

Limits, excesses and exclusions

Policy exclusions, the excesses you need to pay and limits of liability can vary greatly depending on your insurer and the requirements of your business.

Case Study

Vicki operates a popular riverside restaurant in NSW, which is flooded when an intense east coast low causes rainfall that results in the river bursting its banks. The flood water inundates the building damaging stock, fittings and fixtures. However, as Vicki had understood her flood risk and added both a flood extension and business interruption insurance to her business pack policy, she was fully insured for both the physical damage caused to her business and the loss of trade.

CONTACT MORGAN INSURANCE

Address: 75 Redfern St, Cowra NSW 2794
Phone: 02 6342 4861
Freecall: 1300 915 024
Email: enquiry@morganinsurance.com.au

ABN 22 166 392 516 | AR 452128
Authorised Representative of PSC Connect Pty Ltd
AFSL 344648 | ABN 23 141 574 914

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Contact Morgan Insurance today on 1300 915 024.

Morgan Insurance