Cordelia street in South Brisbane

Extreme weather events are becoming a costly risk to Australian businesses, with new research from Insurance Catastrophe Resilience Report revealing that Australia is only second to the United States for the cost of extreme weather events over the past 45 years.

The disruptive and costly impact of extreme weather events in reflected in FM’s 2025 Resilience Index, where Australia is ranked 106 out of 130 countries for its exposure to climate risk, highlighting the importance for Australian businesses to protect themselves against factors that sit outside their control.

“As extreme weather continues to become the new normal, events such as bushfires and floods are becoming more severe and more frequent.” says Michael Hunneyball, FM’s Operations Chief Engineer. “These natural catastrophes are increasingly causing significant damage to property, infrastructure and communities. For businesses across Australia, this can lead to lengthy periods of downtime and loss of revenue. Commercial property and risk managers need to get ahead and proactively identify, assess, and mitigate potential threats to help minimize loss.”

Bushire and flood risks are two prominent risks occurring over Australia’s summer months, and to help businesses prepare, FM recommends the following steps for the season ahead:

Develop comprehensive emergency response plans

Create and regularly update comprehensive flood and bushfire emergency response plans. These should outline roles, responsibilities, evacuation and communication procedures, and include regular drills to ensure their effectiveness.

Fortify your site and maintain defensible space

Ensure general maintenance to remove any potential sources of fire or water accumulation points. This includes clearing surrounding vegetation and debris, regularly inspecting and clearing roofs, floors, and yard drains to prevent blockages and water build up.

Invest in resilient building materials

Upgrade and invest in resilient materials, such as FM-approved flood abatement barriers and protective equipment, and fire-resistant materials in roofs, walls, and windows to protect against embers and radiant heat.

Protect critical assets and equipment

Identify and relocate portable high-value items, stock, equipment, and vehicles to safer locations or elevate them above anticipated flood levels.

Review insurance and financial preparedness

Ensuring your insurance policies are up-to-date and provide adequate coverage for bushfire and flood related damage is crucial to ensure a swift recovery should an event occur.

With Australia’s peak season for bushfires, floods, and other extreme weather events about to hit, implementing these five key steps can help mitigate against your businesses risks and ensure continuity into the new year.

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