Retailers advised: ensure you’re insured for natural disasters

Peak retail industry body the Australian Retailers Association (ARA) today urged retailers to ensure they were adequately insured against the possibility of natural disasters as the Australian fire and flood season opens.

ARA Executive Director Russell Zimmerman said as Australia heads into the peak time for the possibility of natural disasters, retailers needed to review their insurance policies to make sure they don’t find themselves underinsured in the devastating event of a natural disaster.

“This is a timely reminder to Australian retailers that they’re operating in a land of fire and floods, and the consequences of cutting down on insurance costs means they could find themselves underinsured.

“One in every 500 businesses will suffer from a natural disaster in Australia and 43 percent of businesses that experience a natural disaster never reopen.

“Many retailers find out too late they don’t have the insurance cover they need to rebuild their businesses after a fire or flood, which is a sad realisation given they could have recouped their business by insuring to the full value of the business.

“The benefits of insuring to the full value of the business outweigh the costs if and when disaster strikes. To ensure adequate cover and avoid underinsurance, retailers can engage the assistance of an insurance broker who has the specialised knowledge to see whether the business is underinsured and understand each and every policy wording of each insurer.

“An insurance broker is also able to incorporate business interruption insurance into an insurance policy, which puts the business back in the same financial position as it was before the loss- given retailers have to pay employees, meet customer needs, pay off debt and maintain a lifestyle this is more than worth considering.

“ARA Insurance Services will perform a health check for new members of the ARA and existing members upon membership renewal. Retailers should consider joining an association in order to access the specialised knowledge and information necessary for retail businesses.

“Retailers can call ARA Insurance Services on 1300 368 041 or email insurance@retail.org.au to learn more about insurance,” Zimmerman said.

For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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For interview opportunities with ARA Executive Director Russell Zimmerman
contact: Andie McMaster, Media & Communication Officer T: 0408 613 178 E: media@retail.org.au

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