Dozens of fires are burning in Australia, causing the government to declare a state of emergency. Around 25.5 million acres have already burned, with approximately 27 deaths, and around 2000 homes destroyed. The smoke pollution has also caused a disruption in day-to-day activitIes. The air quality index is currently 23 times higher than what is considered to be “hazardous”. 

It is not likely that the blazes will end soon either. Australia’s summer lasts into February. Record breaking temperatures swept through Australia in December and experts warn that the worst may not be over. Extreme winds and heat have fueled the fires making it impossible to control the fires. The experience has led Australia’s government to create The National Bushfire Recovery Agency funded with $2 billion to help restore communities in the aftermath of the bushfires.

Australia is not the only place to experience record-breaking wildfires recently. Back in 2018, California suffered losses due to wildfires. The losses were so devastating that the California State Commissioner requested insurers to expedite the claims so that survivors could start the rebuilding process. The commissioner previously declared an emergency situation so that insurers could use out-of-state adjusters. His request for expedition on claims asked insurers to be more lenient with deadlines and documentation so that payments can be made to policyholders more quickly.

How does your insurance work for you in the case of a natural disaster? Not all disasters are covered in common property insurance policies. It is important that you are informed of your options and have the best policy for the region you are in. It is also important to know your options when it comes to business interruption. Business income insurance helps cover any loss in income from the closing of your business all the way through the rebuilding process. This insurance is designed to keep you from seeing a loss in profit and further debilitating your business. Talk to an agent today to learn more about protecting you, your business, and your employees in the case of a natural disaster.