Contents

As Australia moves into the heart of summer, the bushfire season is already proving challenging. 

Recent bushfires in Victoria have burned around 390,000 hectares and destroyed around 300 buildings. With hot, dry conditions forecast to continue, these events highlight how quickly bushfires can impact businesses, from direct damage to prolonged disruptions.

If you run a business, now is the right time to check your insurance coverage. Many owners only discover gaps in their policy after an event, when it’s too late to adjust. Understand your options and ensure your policies match current risks.

Stay prepared and safe as Australia’s bushfire season continues. Check your coverage now!

Why Bushfire Risks Matter for Australian Businesses

Australia faces higher-than-average bushfire risk this season in many regions, particularly in forest areas during January and February. 

Bushfires can damage or destroy buildings, equipment, stock, and vehicles. They can also interrupt operations through evacuations, power outages, road closures, or supply chain issues.

Past seasons show the financial toll. For instance, the 2019 to 2020 Black Summer bushfires destroyed over 3,000 homes and caused billions in losses with many businesses affected. Underinsurance remains a common issue, leaving owners to cover significant costs themselves.

Key Areas to Review in Your Business Insurance Policy

Take a structured look at your policy before the season intensifies. Here are the main elements to check:

  • Building and Contents Coverage: Confirm that bushfire damage is included. Although most standard policies do, exceptions exist in high-risk areas. Verify that replacement values reflect current rebuilding costs as construction prices have risen in recent years.
  • Sums Insured: Ensure the insured amounts cover full replacement, not just market value. Many businesses underestimate this, especially for specialised equipment or fit-outs.
  • Business Interruption Coverage: This helps with lost income and ongoing expenses (e.g., rent or wages) if a bushfire forces closure. Check the indemnity period (typically 12 months), but a longer period may be needed for major disruptions.
  • Debris Removal and Clean-Up Costs: Bushfires often leave extensive ash and debris. Confirm your policy includes these costs. They can add up quickly.
  • Exclusions and Special Conditions: Some policies have sub-limits or requirements in bushfire-prone zones. Review any conditions related to fire danger ratings or prevention measures on your property.
  • Additional Covers: Consider options like machinery breakdown (if power surges occur) or increased costs for temporary relocation.

How an Insurance Broker Can Help

Policies vary between providers and details can change over time. 

As an independent brokerage, Tank Insurance can compare options from multiple insurers to find coverage that suits your business location, industry, and risk profile. We can explain terms clearly and identify any adjustments needed for the current bushfire season.

If your business operates in or near bushfire-prone areas, common across New South Wales and Victoria, a quick review can provide peace of mind.


Reach out to us today to go over your policy. Give us a quick call at 02 9000 1155 or send us an email via [email protected]. Being prepared helps your business stay resilient no matter what the season brings.