Tropical Cyclone Alfred is currently approaching south-east Queensland as a Category 2 system, with landfall expected near Brisbane early Friday morning. The cyclone is forecast to bring heavy rainfall, damaging winds, and potential flooding to the region.
Stay informed with weather alerts
Staying informed is the first line of defence against unpredictable weather.
Monitor weather updates: Regularly check forecasts and severe warnings on the Bureau of Meteorology (opens a new window) website or app.
Sign up for alerts: subscribe to local emergency services alerts and follow local news for real-time updates.
Given this imminent threat, businesses must prepare for the potential impacts of Cyclone Alfred. Beyond direct property damage, disruptions to third parties - such as utility service providers - can also lead to business losses. A single storm can cause significant financial setbacks, underscoring the importance of proactive preparation.
Six critical steps to navigate the claims process:
1. Ensure staff safety.
Employee safety should be the top priority. Conduct a thorough risk assessment, communicate safety protocols clearly, and provide necessary support for those affected. If evacuation is required, follow local authorities' guidance and establish a system to check in with employees.
2. Report the loss to your broker and insurer(s).
Clearly specify the affected location(s) and date of loss. Provide a comprehensive description of the type and extent of damage, along with full contact details for your organisation’s risk manager or designated point of contact.
3. Assemble your event response team.
This team may include your risk manager, the claims advocate from your brokerage, and key department heads from sales, service, maintenance, inventory, engineering, accounting, and legal. Key information, such as business continuity and disaster management/recovery plans (opens a new window), should be located and reviewed. Assign specific individuals to oversee onsite contractor movements and to track all activities and costs. Work with your claims advocate to ensure that the assigned adjuster and insurer are kept informed of all activities.
4. Create accounting codes for all costs and document physical damage.
Utilise photographs, videos, news reports, and social media posts for documentation. Maintain this information in an accessible location for sharing with insurers, retaining copies for your records. Establish accounting codes to track costs, including purchase orders, sales receipts, capital equipment purchases, and any other additional expenses.
5. Assess and begin to address damage and operational disruptions.
Evaluate the need for temporary or emergency repairs and other measures to mitigate business loss. Consider the storm's impact on inventory, supplies, finished products, and work in progress. Recognise that business restoration may be a long-term, iterative process requiring adaptability. Document all activities and maintain email correspondence in an accessible location.
6. Assess the financial impact to property and to the business.
Promptly develop a high-level estimate of physical damages and business impacts. Collaborate with your broker and/or claim advocate to document these impacts accurately and facilitate requests for financial reimbursement from insurers. Understand that this process may require adjustments over time. In the event of a large or complex loss using the services of an expert Claim Preparer may be beneficial as they will be able to work with and support the business to formulate a best-practice and supported claim from the available documentation and cover in place.
How Lockton can help
In the face of Tropical Cyclone Alfred, having access to experienced insurance brokers is crucial. Lockton brokers understand the complexities of insurance coverage and can assist in managing potentially complex claims processes.
We help businesses:
Organise their claims efficiently
Optimise the use of internal and external resources
Expedite recovery efforts
Identify key learnings to strengthen future preparedness
For assistance with managing losses related to Cyclone Alfred, contact your Lockton broker today.
The contents of this publication are provided for general information only. Lockton arranges the insurance and is not the insurer. While the content contributors have taken reasonable care in compiling the information presented, we do not warrant that the information is correct. The contents of this publication are not intended as a legal commentary or advice and should not be relied on in that way. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content in this publication.
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