As a carpenter in Australia, you’re no stranger to the challenges of working outdoors or on construction sites. 

But with the country’s extreme weather, think scorching summers, torrential rains and devastating bushfires, your business faces unique risks that can disrupt projects, damage equipment or even halt operations entirely. 

As an insurance broker, we understand the pressures carpenters face and we’re here to share practical tips on securing the right insurance to protect your livelihood, especially as weather patterns become more unpredictable.

Recent data paints a stark picture: extreme weather events cost Australian insurers $2.19 billion in claims in 2023-24.

For carpenters, these conditions can translate into damaged tools, delayed projects or costly repairs to worksites. 

Let’s dive into the seasonal risks you might face and how tailored insurance can help keep your business on track.

Why Extreme Weather Matters for Carpenters

Australia’s climate is becoming more volatile with floods, bushfires, cyclones and storms hitting harder and more often. 

The Insurance Council of Australia (ICA) reports that 1.36 million properties nationwide are at risk of flooding, with 225,000 homes and 73,000 businesses facing a 2% to 5% chance of flooding each year. 

For carpenters, this means:

1. Flood Damage: Heavy rains can flood worksites, ruining timber, damaging tools and delaying projects.
   
   
2. Bushfire Risks: With hotter, drier summers, especially during El Niño, bushfires can destroy materials or force evacuations, halting work.
   
   
3. Storms and High Winds: Storms can damage scaffolding, scatter materials or injure workers.
   
   
4. Heat and Drought: Extreme heat can slow productivity, damage equipment or create unsafe working conditions.

These risks don’t just threaten your tools or projects; they can hit your bottom line, too. 

Rising insurance premiums add financial strain. For instance, Home Insurance premiums jumped by 28% on average in 2022-23 and up to 50% for high-risk properties. 

Tips to Protect Your Carpentry Business

To keep your business running smoothly through Australia’s wild weather, here are practical tips tailored for carpenters:

1. Review Your Public Liability Insurance
   
   Public Liability Insurance is a must for carpenters, covering you if your work causes property damage or injury.
   
   For example, if a storm dislodges scaffolding and damages a client’s property, this policy can cover repair costs and legal fees.
   
   Ensure your policy limits are high enough.
   
   
2. Protect Your Tools and Equipment
   
   Your tools are your livelihood and replacing them after a flood or fire can be costly.
   
   Consider a Tool and Equipment Insurance policy that covers theft, loss or damage due to weather events.
   
   Check if your policy includes coverage for items stored on-site or in vehicles as storms can strike unexpectedly.
   
   
3. Consider Business Interruption Insurance
   
   If a cyclone or flood halts your projects, Business Interruption Insurance can cover lost income and ongoing expenses such as rent or wages.
   
   With natural disasters costing homeowners $4 billion every year, delays are common, especially in high-risk areas.
   
   This coverage can help you stay afloat during downtime.
   
   
4. Check for Flood and Storm Coverage
   
   Not all policies automatically include flood or storm damage.
   
   Given that 1.2 million Australian properties face some flood risk, confirm with your broker whether your policy covers these events.
   
   If you work in flood-prone areas, this is critical.
   
   
5. Mitigate Risks to Lower Premiums
   
   Insurers often reward proactive risk management.
   
   Simple steps (e.g., securing materials, clearing debris or storing tools in weatherproof containers) can reduce claims and potentially lower premiums.
   
   
6. Understand Your Policy’s Fine Print
   
   Insurance policies can be complex with varying definitions for terms like flood or storm.
   
   A 2023 Climate Council report found that inconsistent policy terms contribute to underinsurance.
   
   With the help of an insurance broker, you can review your Product Disclosure Statement (PDS) to make sure you’re covered for the risks in your area.
   
   
7. Plan for Seasonal Risks
   
   Summer is considered Australia's riskiest season, but other seasons bring risks as well.
   
   That’s why it’s best to check your coverage, prepare worksites (e.g., secure loose materials) and use tools or apps to stay informed about local risks.

Why Work with an Insurance Broker?

An insurance broker can help you find the best option available.

With premiums rising, a broker can compare policies, negotiate with insurers and tailor coverage to your specific needs as a carpenter.

A broker can also assist you in understanding your local risks, whether you’re working in flood-prone locations or bushfire-exposed regional areas.

Take Action Today

Extreme weather isn’t going away. In fact, it’s getting worse. 

NASA’s data showed a doubling of extreme weather events compared to historical averages, and Australia ranks 87th globally for climate exposure.

For carpenters, this means planning ahead is non-negotiable. 

Here’s how you can get started:

• Talk to an Insurance Broker: Contact a broker to review your current policies or explore new ones.
  
  
• Assess Your Risks: Use tools such as the Climate Council’s Climate Risk Map to check your work areas.
  
  
• Prepare Your Sites: Clear debris, secure equipment and follow local weather alerts.
  
  
• Stay Informed: Keep up with seasonal climate outlooks from the Bureau of Meteorology. 

Don’t wait for the next natural disaster to test your coverage. 

Here at Tank Insurance, our team can help you find affordable, comprehensive policies that protect your carpentry business from Australia’s extreme weather. 

Reach out today, and let’s build a plan that can keep you covered, rain or shine.