How to prepare your business for storm and weather damage

Severe weather is becoming more frequent for Australian businesses. Storms, floods, hail, cyclones and bushfires can stop operations, damage assets, and hit cash flow hard. Many businesses underestimate this risk until it happens to them.

Weather events can even reduce economic output in key industries when operations are disrupted. Preparing ahead reduces uncertainty and gives you options to protect assets and continuity.

Weather damage is a growing threat for Australia’s SMEs as severe weather events in business insurance claims rose from 9.6% in FY 2023 to 16.8% in FY 2025.

According to the Climate Change Authority, natural disasters cost the Australian economy $2.2 billion in just the first half of 2025, largely due to disruptions from cyclones, floods and fires.  and fires.

And according to the Insurance Council of Australia, over the last 30 years insurers paid an average of $2.1 billion per year to customers impacted by extreme weather events. However, the average annual cost of extreme weather claims has more than doubled to $4.5 billion. .

That financial context matters. Weather risk is not theoretical; it’s measurable and can translate into significant losses for business assets, interruptions and repair costs.

Why weather risk matters for your business

Extreme weather can affect businesses by:

• Damaging roofs, walls, windows or outdoor equipment.
• Flooding storage, stockrooms and workspaces.
• Causing extended closures and lost revenue.
• Increasing operational costs after repairs or cleanup.

Understand your weather risk

Start by looking at the weather events most likely to affect your business premises. Storms, floods, hail, cyclones, and bushfires do not impact every area the same way. Reviewing past events in your region and checking Bureau of Meteorology (BOM) alerts can help you spot patterns and weak points around your premises. This gives you a clearer picture of what you need to prepare for, rather than planning for every possible scenario.

Keep your business premises well maintained

Well-maintained buildings tend to suffer less damage during severe weather. Secure loose outdoor items, clear gutters and drains, and trim overhanging trees before storm season begins. Check roofs, doors, and windows for wear, because small gaps or loose fittings can quickly turn into water damage or structural issues during heavy rain or strong winds.

Create or review your business continuity plan

A business continuity plan sets out how you will keep operating, or recover quickly, if severe weather disrupts your business. Review who is responsible for key decisions, how staff and customers will be updated, and what steps you would take if your premises became unusable. The plan does not need to be complex, but it should reflect how your business actually runs and be easy to follow under pressure.

Protect equipment, stock, and important data

Think about which assets would cause the most disruption if they were damaged. If flooding is a risk, raise critical equipment and stock off the floor where possible. Back up business data regularly and store copies securely offsite or in the cloud. Power outages and surges are common during storms, so checking surge protection for key systems can also help reduce risk.

Check and review your insurance

Regularly check your insurance coverage to ensure your policy matches your needs. Understand your policy inclusions for storms and extreme weather. Ensure it covers for damage to buildings, contents, glass, and cover for business interruption. Understand limits, waiting periods, and exclusions, and ask questions if anything is unclear.

Know where vehicles and mobile assets will go

Business vehicles, trailers, and mobile equipment are often exposed during severe weather. Plan in advance where these assets should be moved if a storm is forecast, such as covered areas or higher ground. Make sure more than one person knows the plan so it can be acted on quickly if conditions change.

Train staff on what to do if a storm hits

Clear guidance helps keep business and people safe. Talk to staff through what to do if natural disaster occurs during work hours, including when to stop work, who to contact, and how updates will be shared. Keeping emergency contacts current and easy to access can make a real difference in stressful situations.

Document your business before damage occurs

Photos, videos, and records taken before storm season can be useful if you need to assess damage later. Keep an up-to-date list of equipment and stock, along with receipts where possible. Having this information organised can save time and reduce uncertainty during recovery.

Create a plan to rebuild after a storm

Recovery does not start after damage happens. It starts with planning ahead. Think through what rebuilding would look like if your business was impacted by severe weather. Identify critical repairs that would need to happen first, which suppliers or trades you would contact, and how you would prioritise reopening parts of the business. Consider temporary workarounds, like operating from another location or scaling back services while repairs are underway. Having a clear rebuild plan helps reduce downtime, manage costs, and make calmer decisions when things feel urgent.

Keep informed

Preparation works best when it is ongoing. Monitor official weather warnings and act early when severe conditions are predicted. Review your plans from time to time, especially if your business changes, so they remain practical and relevant.