What are the key risks posed by


Research1 shows that bushfire risks are rising across Australia, especially in
coastal WA, central Queensland and in large parts of NSW, Victoria and the
ACT. Bushfires can spread with little warning and can be unpredictable, with
the potential to cause damage due to smoke or water as well as the fire itself.
Even businesses outside of the fire zones can feel the impact of bushfires, 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 bushfires pose to both their
premises and trading. Contrary to popular belief, bushfires are not just a threat
facing rural businesses. Thanks to the urban sprawl of our cities, outer
metropolitan suburbs are meeting the bush and increasing the risk to more
businesses Australia-wide.

“Bushfire seasons are getting
longer and catastrophic
events are increasing, as
hotter, drier conditions make
fuels more combustible.”

Bushfire Risk: changing trends
across Australia, IAG, 2020. 

Did you know?


The 2019-20 Black Summer bushfires
across Victoria, NSW, Queensland and SA
resulted in $5.47 billion in insurance

Insurance Catastrophe Resilience Report:
2020-21, Insurance Council of Australia. 


Two-thirds of Australia’s small and
medium sized businesses said they were
directly or indirectly impacted by the
Black Summer bushfires. 

NAB SME bushfire impact survey: part 1, 2nd
March, 2020. 

The most significant impacts on SME as a
result of the Black Summer fires were a
reduction in cashflows, loss of customers
and disruption to suppliers. 

NAB SME bushfire impact survey: part 1, 2nd
March, 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 at work.

Type of cover
Potential benefit
Business Pack Helps 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 Compensation Can cover the cost of your employees’ wages, rehabilitation and medication if they
become sick or injured through their work.

Limits, excesses and

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.

Management Liability Insurance

Case Study

Brian runs a water fun park in a popular tourist town in coastal Victoria. While recent
bushfires didn’t damage his property, his business was impacted by a prevention of
access order as Victoria Police shut the main highway, which provided the only way
into his business. As a consequence, visitors couldn’t get to the water park and Brian
had to close, suffering a loss of revenue. Because the interruption was due to the
official road closure, rather than tourists simply staying away, he was able to make a
business interruption claim to cover his losses.
1 Bushfire Risk: changing trends across Australia, IAG, 2020.

Management Liability Insurance