Recent extreme weather events in the Middle East and North Africa (MENA) region have seen many businesses start thinking about how they can protect their business better, should the worst happen again. The 2024 floods in Dubai, for example, are estimated to have cost around $8.5 billion (opens a new window) in property damage and disruption to the economy.
Events like these are thankfully still a rarity in the MENA region, but the experience does provide some important lessons. The unexpected can – and sometimes will – happen, without warning and often with devastating consequences, but there are some relatively simple steps businesses can take to make sure they are more resilient to the worst of the weather, particularly flooding.
The level of property damage experienced during a flood can be significantly reduced if a business plans its defences in advance:
Carry out a flood assessment study of the site.
Develop a Flood Emergency Response Plan (FERP) detailing the steps that need to be taken to protect the property before, during and after a flood.
Use the results of the flood assessment study to develop and record Standard Operating Procedures for the deployment of flood walls and barriers.
Periodically check the roof, gutter pipes and drains, particularly if rain is forecast.
Ensure the drainage system inside the premises is adequate and check drainage backflow protection and isolation.
Create a post-flood repair and business recovery plan. This should include alternative locations for operations and how to engage the vendors and service providers who will facilitate that.
Conduct regular training on crisis management and business recovery procedures.
The weather, however, rarely schedules it’s arrival, but armed with a comprehensive FERP, businesses can still limit the damage their property suffers:
Trained employees should safely shut down equipment and machinery and isolate electrical equipment.
Relocate key equipment and materials if possible and if not, store them above floor level, away from the water.
Activate flood barriers and gates. In their absence, sandbags make for a very effective water barrier.
And use portable discharge pumps to remove water from the premises, using external tankers to store it.
But even the best prepared business, with the most thorough FERP, isn’t immune to extreme weather events, and the cleanup after a flood can be just as important as the preparation. This is when the insurance industry comes into its own, and to increase the likelihood of a smooth claims process, business should:
Assess the extent of the damage as soon as possible, taking photos and keeping a detailed record of everything.
Contact the insurance broker to get the claims process started. They will notify the insurer and ensure a loss adjuster is sent to the premises to start the official damage assessment and recovery process.
Do not dispose of any damaged property until the insurer has confirmed in writing that it is OK to do so.
Likewise, and if practical, don’t start any repairs or replace any equipment without agreement with the insurer or loss adjuster.
Emergency or urgent repairs can be made but it’s essential that photos or videos are taken before any work starts.
Keep all receipts and invoices for repairs and replacements.
The devastating effects of extreme weather might not be entirely avoidable, but with the right preparation and the right support from an insurance broker, the extent of the damage – and the length of time spent not doing business– can be significantly reduced.
