Ever wondered how small and medium enterprises (SMEs) keep their wheels turning when wild weather strikes?

In Australia, where climate change is cranking up the heat with increased risks of bushfires, floods, and cyclones, SMEs are feeling the pressure. 

The Climate Council’s report shows that around 652,424 properties, or one in 23, across Australia are ‘high risk’ to one or more hazards in 2025, while 1.55 million properties, or one out of 10, are at ‘moderate risk’.

Extreme weather events have also worsened due to pollution, increasing the costs of repair and maintenance which affects homes and businesses.

So for Aussie SMEs relying on vehicles for daily operations, such as tradies, delivery services, or caterers, Commercial Motor Insurance is an insurance business owners cannot miss.

Not only that...

It's an insurance they need to get right to ensure the correct cover, relevant to their unique operations.

Curious?

Let's look at how it levels up your resilience in this shifting climate.

The Critical Role of Commercial Motor Insurance in a Changing Climate

SMEs are a growing force in the country, employing over 70% of Australia’s workforce.

Their lifeline is their vehicles, whether it’s a delivery van, a tradie’s ute, or a mobile food truck. 

However, due to their limited resources, SMEs are hit hard by climate-driven disruptions that damage their trusted vehicles.

That’s where Commercial Motor Insurance comes in, a non-negotiable in this ever-changing climate.

Here’s how it boosts SMEs’ resilience:
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1. Protection Against Escalating Weather Damage

Perils caused by worsening weather conditions are happening more often.

Data from the Insurance Council of Australia’s (ICA) Insurance Catastrophe Resilience Report for 2022 to 2023 shows that there were over 302,000 disaster-related claims for that financial year alone which cost around $7.28 billion insured losses. $6 billion of said losses came from the northern New South Wales and south-east Queensland floods dubbed as the ‘costliest event’ in Australian history. 

For SMEs, a single damaged vehicle, be it due to flood or other events, means thousands in repairs and lost income.

The right cover could make all the difference.

Using a broker is recommended to ensure your policy responds in the appropriate way, covering flood, storm, or bushfire damage.

This will ensure that vehicles can be repaired or replaced quickly. 
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2. Minimising Financial Fallout from Downtime

Climate events don’t just simply damage your vehicles, they end up disrupting your entire operations.

Commercial Motor Insurance can include vehicle replacement coverage to help SMEs manage expenses, say temporary vehicle hire, during repairs.

Again, this is why having a broker is critical to ensure if this is necessary for you, they are able to obtain and structure your policy in the way in needs to be, to respond appropriately.
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An example:

A florist, hit by a cyclone.

They have Commercial Motor Insurance.

It included replacement vehicle or hire when they are hit with an event.

They are then able to hire a van to ensure they don’t miss any orders. 
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3. Navigating New Climate-Driven Risks

The ongoing climate change brings emerging hazards.

For instance, the rising temperature can increase the chances of lithium battery fires in electric vehicles.

To cover these incidents and to protect your SME from unexpected losses, Commercial Motor Insurance is a necessity.

If you’re an eco-courier who uses an electric van, you may be able to rely on Commercial Motor Insurance to cover battery fire damages. A broker can help to find the right policy for you.
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How SMEs Can Leverage Commercial Motor Insurance
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To make the most out of Commercial Motor Insurance, SMEs should act proactively:

• Evaluate Climate Risks: Map out your area’s vulnerabilities and ensure that map’s always up-to-date. Think, flood zones in  or bushfire risks. Also, take the time to review your policy. Check whether it covers these events.
  
  
• Choose Comprehensive Coverage: Look for Commercial Motor Insurance that provides protection for damages or losses caused by natural disasters, business interruptions, and other emerging dangers.
  
  
• Team Up with Experts: Never shy away from reaching out to an insurance broker to ask for assistance. Brokers will listen to you and tailor your Commercial Motor Insurance to your specific needs, so you’re ready to face any climate impacts.
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Level Up Your Vehicle Defence

Aussie SMEs are in an era of unprecedented challenges as climate change brings extreme weather and introduces new risks.

To boost your resilience against vehicle damage and its effects, whether it’s repairing a flood-damaged van or covering rental costs after a bushfire, Commercial Motor Insurance keeps you moving forward.

As a leading insurance broker in Sydney, Tank Insurance's team is always ready to fortify your vehicle and your business.

Upgrade your defences and face potential risks with confidence.

Never let the next climate event derail your business, get in touch with Tank Insurance now!