2025 is not flood-free as heavy rainfalls hit Australia.

Queensland’s torrential rains reached NSW last Saturday, increasing flood risks and potential financial losses and property damages.

For Aussie businesses, General Property Insurance or Commercial Property Insurance is a can’t-do-without.

Always remember: better safe than sorry.

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Floods: A Growing Worry for SMEs

Disasters caused by changes in climate and weather patterns are on the rise, especially flooding. Australia is particularly susceptible to it due to long-lasting rainfalls that push rivers to overflow. 

According to the Australian Climate Service (ACS), flooding is one of the main reasons for fatalities. Those located near coastal areas, business owners and homeowners alike, are the most vulnerable to such peril. Even more so for small and medium enterprises (SMEs).

SMEs’ experiences with flooding are different from large-scale companies or corporations. Sadly, SMEs fare worse. This is because of different factors, such as minimal resources and workforce, limited access to comprehensive risk reduction and management strategies, and narrower distribution and supply chains.

As a result, floods leave SMEs with financial losses and property damage that are difficult to recover from because of high repair costs, economic uncertainties, and supply and distribution chain disruptions.

Consequently, some SMEs fail to keep their businesses afloat and, in turn, cannot reach their full commercial potential.

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What Is At Risk: Not Getting the Right Insurance

The right insurance provides SMEs with financial security and peace of mind.

Insurance covers damages to property, business interruptions, and issues on liabilities which can be devastating for businesses if left uncontrolled. 

Say, a flood damaged your shop's equipment.

Without insurance, you can’t receive compensation for repairs or replacements.  

Not getting the right insurance policy and coverage damages SMEs. SMEs that don’t have insurance cannot recover financial losses caused by flooding and other perils.

Along the line, economic downtime, revenue loss, equipment and machinery damage, and decreased workforce will greatly affect SMEs. This will lead to employee layoffs and, eventually, bankruptcy and closure.

That is why obtaining the right insurance policy and coverage will be a great boon to SMEs.

Insurance is a lifeline for SMEs.

It helps SMEs prepare for risks to continue thriving regardless of the industry they belong to.

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General Property Insurance & Commercial Property Insurance: An SME Must-Have

While not legally required in Australia, getting General Property Insurance or Commercial Property Insurance is highly recommended for Aussie SMEs.

The two insurance policies might seem similar at first glance, but there are certainly differences between them.

Get to know these two to get the right coverage for your business.

1. General Property Insurance: General Property Insurance covers physical assets such as homes, businesses, and personal belongings. It typically covers the costs of repair or replacement of the insured asset if the said asset is damaged or destroyed by a covered event.

2. Commercial Property Insurance: Commercial Property Insurance provides protection to businesses against financial losses in situations where there is damage or destruction to a business’ building, equipment or machinery, and inventories due to fire, theft, and other climate-related perils.

Where does flood coverage come in?

Flood coverage is usually an add-on. That is, it's an optional extra.

This means that it is not a part of the standard coverage at the outset, but you can get it as an extension to your insurance policy. Check and review your policy documents and contact your insurance broker.

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Protect Your Assets Against Flooding with an Insurance Broker‍

How?

We are an insurance broker in Sydney, with a team of dedicated and reliable experts who can provide SMEs with quality assistance and advise.

We also deal with various industries, making our knowledge and understanding of insurance policies and coverages up-to-date, relevant, reliable, and broad.

What are you waiting for?

Protect your business today, get in touch with Tank Insurance.