BUSINESS insurance

and flood

Two risks that can halt an operation

Bushfire and flood are part of operating in Western Australia. For growers from Carnarvon through to Manjimup, these risks are not theoretical. They sit in the background until something happens nearby and the exposure becomes very real.

Words Dylan Panizza, Director, Platinum Tiger

WHAT makes these two threats different from most others is how quickly they can shut things down. A machinery failure can often be managed, a labour issue can be worked through. However, a fire or flood can stop a season mid stream and create financial pressure long after the event itself.

With bushfire, insurers look closely at proximity to bushland and unmanaged vegetation, as well as how the site is maintained. Distance to tree lines, surrounding fuel load, firebreaks, access for emergency services and the positioning of sheds all influence how risk is assessed.

Construction type matters, but so does housekeeping. Clear separation between storage areas, tidy plant rooms and documented maintenance demonstrate active risk management.

It is also important to understand how your policy responds in the event of a declared bushfire and what excess would apply. In some circumstances, a bushfire can trigger a different or higher excess than the standard property excess, which can surprise businesses if it hasn’t been reviewed beforehand.

Flood is often less visible but just as disruptive. It is not limited to major river systems. Surface water, drainage failures, and stormwater backflow can damage cool rooms, offices, and electrical systems in a matter of hours. Flood cover is not automatically included in all business policies, and definitions vary between insurers.

Reviewing how your policy defines flood, whether it is included, excluded, or limited, and what excess applies is essential before renewal.

Both bushfire and flood highlight the same point. Insurers assess what is documented and visible. Maintenance records, site controls, and a clear understanding of exposure allow an operation to be judged on its actual merits rather than broad assumptions tied to postcode or region.

Preparation done before renewal carries far more weight than explanations given after a loss.

Bushfire and flood are not events you can control. How well your operation is prepared for them is.